FX.co ★ Fractal analysis for major currency pairs on October 16

Dear colleagues.

For the EUR / USD pair, the price is still in correction from the upward structure with the level of 1.1789 being the key support. For the GBP / USD pair, we continue to wait for the continuation of the upward movement after the breakdown of 1.3342. For the USD / CHF pair, the price is still in correction. The key support for the downward structure is 0.9782. For the USD / JPY pair, we follow the upward cycle from October 6. For the EUR / JPY pair, we follow the formation of the downward structure of October 12. For the GBP / JPY pair, the continuation of the upward movement is expected after the breakdown at 149.15. However, it must be taken into account that for the EUR / JPY pair, we do not observe a synchronous development of the situation.

The forecast for October 16:

Analytical review of currency pairs in the scale of H1:

For the EUR / USD pair, the key levels on the scale of H1 are: 1.1987, 1.1948, 1.1888, 1.1866, 1.1815, 1.1789 and 1.1731. Here, we continue to follow the upward structure of October 6. The continuation of the upward movement is expected after passing the price of the noise range at 1.1866 - 1.1888. In this case, the target is 1.1948. The potential value for the top is the level of 1.1987, after which we expect consolidation as well as a pullback to the bottom.

Short-term downward movement is possible in the area of 1.1815-1.1789. The breakdown of the last value will lead to the development of a downward trend. In this case, the potential target is 1.1731. Up to this level, we expect the initial conditions for the downward cycle to be formalized.

The main trend is the upward structure of October 6.

Trading recommendations:

Buy: 1.1890 Take profit: 1.1945

Buy: 1.1950 Take profit: 1.1985

Sell: 1.1786 Take profit: 1.1740

Sell: 1.1728 Take profit: 1.1670

For the GBP / USD pair, the key levels on the scale of H1 are: 1.3432, 1.3401, 1.3342, 1.3303, 1.3219, 1.3173, 1.3123 and 1.3027. Here, we continue to follow the upward structure of October 6. Short-term upward movement is expected in the area of 1.3303 - 1.3342. Breaking the level of 1.3342 should be accompanied by a pronounced movement towards the level of 1.3401. The potential value for the top is still the level of 1.3432, from which we expect a pullback downwards.

Short-term downward movement is possible in the area of 1.3219 - 1.3173. The breakdown of the last value will lead to an in-depth movement. Here, the target is 1.3123. This level is the key support for the top.

The main trend is the upward structure of October 6.

Trading recommendations:

Buy: 1.3304 Take profit: 1.3340

Buy: 1.3344 Take profit: 1.3400

Sell: 1.3217 Take profit: 1.3175

Sell: 1.3170 Take profit: 1.3125

For the USD / CHF pair, the key levels on the scale of H1 are: 0.9782, 0.9759, 0.9742, 0.9711, 0.9696, 0.9661 and 0.9634. Here, we continue to follow the downward structure of October 6. The continued development of the downward cycle is expected after passing the price of the noise range at 0.9711 - 0.9696. In this case, the target is 0.9661. The potential value for the bottom is the level of 0.9634, from which we expect a rollback upward.

Short-term upward movement is possible in the area of 0.9759 - 0.9782. The breakdown of the last value will lead to the development of an upward structure. In this case, the target is 0.9832. Up to this level, we expect the initial conditions for the upward cycle to be formalized.

The main trend is the downward structure of October 6.

Trading recommendations:

Buy: 0.9762 Take profit: 0.9780

Buy: 0.9786 Take profit: 0.9830

Sell: 0.9695 Take profit: 0.9665

Sell: 0.9658 Take profit: 0.9640

For the USD / JPY pair, the key levels on a scale are: 112.70, 112.36, 112.10, 111.66, 111.42, 110.87 and 110.49. Here, we follow the downward structure of October 6. Short-term downward movement is expected in the area of 111.66 - 111.42. The breakdown of the last value will lead to the development of a pronounced movement. Here, the target is 110.87. The potential value for the bottom is the level of 110.49, from which we expect a rollback to the top.

Short-term upward movement is possible in the area of 112.10 - 112.36. The breakdown of the last value will lead to in-depth correction. Here, the target is 112.70. This level is the key support for the top.

The main trend is the downward structure of October 6.

Trading recommendations:

Buy: 112.10 Take profit: 112.34

Buy: 112.38 Take profit: 112.70

Sell: 111.64 Take profit: 111.45

Sell: 111.40 Take profit: 110.94

For the CAD / USD pair, the key levels on the H1 scale are: 1.2510, 1.2487, 1.2471, 1.2445, 1.2427, 1.2412 and 1.2380. Here, we follow the downward structure from October 6. At the moment, the price is in correction. The continued downward movement is expected after the breakdown of 1.2445. In this case, the target is 1.2427. In the area of 1.2427 - 1.2412 is the consolidation of the price. The potential value for the downward trend is the level of 1.2380, from which we expect a pullback upward.

Short-term upward movement is possible in the area of 1.2471 - 1.2487. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.2510. This level is the key support for the downward structure.

The main trend is the downward structure of October 6.

Trading recommendations:

Buy: 1.2471 Take profit: 1.2485

Buy: 1.2490 Take profit: 1.2510

Sell: 1.2443 Take profit: 1.2427

Sell: 1.2410 Take profit: 1.2380

For the AUD / USD pair, the key levels on the scale of H1 are: 0.7954, 0.7931, 0.7900, 0.7885, 0.7863, 0.7846 and 0.7822. Here, we continue to follow the upward structure of October 6. Passing the price of the noise range at 0.7885 - 0.7900 will allow us to count on the movement towards 0.7931. Near this level is the consolidation of the price. The breakdown of 0.7933 should be accompanied by a movement towards the potential target of 0.7954, from which we expect a pullback downwards.

Short-term downward movement is possible in the area of 0.7863 - 0.7846. The breakdown of the last value will lead to in-depth correction. Here, the target is 0.7825.

The main trend is the upward structure of October 6.

Trading recommendations:

Buy: 0.7900 Take profit: 0.7930

Buy: 0.7933 Take profit: 0.7954

Sell: 0.7863 Take profit: 0.7848

Sell: 0.7844 Take profit: 0.7825

For the of EUR / JPY, the key levels on the scale of H1 are: 133.00, 132.72, 132.52, 131.96, 131.78, 131.31 and 130.98. Here, we follow the downward structure of October 12. The continued downward movement is expected after passing the price of the noise range at 131.96 - 131.78. In this case, the target is 131.31. The potential value for the bottom is the level of 130.98, from which we expect a rollback to the top.

Short-term upward movement is possible in the area of 132.52 - 132.72. The breakdown of the latter value will lead to an in-depth movement. Here, the target is 133.00. This level is the key support for the bottom.

The main trend is the formation of a downward structure from October 12.

Trading recommendations:

Buy: 132.52 Take profit: 132.70

Buy: 132.76 Take profit: 133.00

Sell: 131.76 Take profit: 131.35

Sell: 131.28 Take profit: 131.00

For the GBP / JPY pair, the key levels on the scale of H1 are: 150.75, 150.17, 149.73, 149.15, 148.52, 148.12 and 147.61. Here, we continue to follow the upward structure of October 6. The continuation of the upward movement is expected after the breakdown at 149.15. In this case, the target is 149.73. Near this is the consolidation of the price. Its breakdown will allow us to count on the movement towards 150.17. The potential value for the top is the level of 150.75, from which we expect the development of the corrective movement downwards.

Short-term downward movement is expected in the range of 148.52 - 148.12. The breakdown of the latter value will lead to the development of in-depth correction. Here, the target is 147.61. This level is the key support for the top.

The main trend is the upward structure of October 6.

Trading recommendations:

Buy: 149.15 Take profit: 149.70

Buy: 149.78 Take profit: 150.15

Sell: 148.50 Take profit: 148.15

Sell: 148.08 Take profit: 147.65