EUR/USD
Analysis:
The uptrend of the EUR/USD pair pushed it to the resistance zone. Throughout January, the price formed a downward correction. Since February 5, a reversal pattern has been developing before the start of a new trend wave.
Forecast:
Today, the pair is likely to trade sideways. In the first half of the day, it may try to break through the support level. At the end of the day or tomorrow, there is a high probability of a reversal and a subsequent rise in the area of the resistance zone.
Potential reversal areas
Resistance:
- 1.2170/1.2200
Support:
- 1.2100/1.2070
Recommendation:
It is risky to open short deals on the euro. So, it is better to refrain from opening short traders. After the end of the current downward movement, we should look for signals to enter the market.
AUD/USD
Analysis:
The Australian dollar is gaining momentum. The quote reached a strong resistance zone. The structure of the last section of the wave from December 21 looks complete. However, there are no signals of an immediate change of movement on the chart.
Forecast:
Over the next day, the AUD/USD pair is likely to halt its upward movement. So, we expect the formation of a reversal and the resumption of the downward movement. The support zone indicates a pullback.
Potential reversal areas
Resistance:
- 0.7890/0.7920
Support:
- 0.7830/0.7800
Recommendation:
It is not recommended to open long deals as the pair looks overbought. It is favorable to refrain from entering the market until the end of the upcoming price decline. When it happens, we should look for buy signals.
Explanation: In simplified wave analysis, waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The arrows show the formed structure; the dotted line shows the expected movements.
Attention: The wave analysis does not take into account the duration of the movements of the pair in time!
The material has been provided by InstaForex Company - www.instaforex.com