FX.co ★ Simplified wave analysis and forecast for EUR/USD and GBP/JPY on November 16

EUR/USD

Analysis:

The upward wave structure that is actual for the current day has been reporting since November 4. Over the past week, the price has been forming the correction part of the movement. It has not been completed yet. The final drop is missing.

Forecast:

Today, the price is expected to move sideways in the corridor between the opposite zones. After trying to put pressure on the resistance zone, you can wait for a downward vector. Confirmation is required when changing the course. A short-term puncture of the upper limit of resistance is possible. The support zone shows the expected lower limit of the daily range.

Potential reversal zones

Resistance:

- 1.1850/1.1880

Support:

- 1.1790/1.1760

Recommendations:

In the context of the upcoming flat decline, trading transactions in the euro may be unprofitable. It is recommended to refrain from trading until the end of the correction and look for buy signals at the end of it.

GBP/JPY

Analysis:

The direction of the short-term trend in the pair's market is set by the rising wave from September 23. From November 9, the price is adjusted, forming the beginning of a full correction. The structure of the movement has the wrong kind.

Forecast:

In the current day, the general sideways mood of the price movement is most likely. After an attempt to put pressure on the resistance zone, the pair is expected to turn and move to the support area. Going beyond the estimated boundaries of the corridor is unlikely today.

Potential reversal zones

Resistance:

- 138.70/139.00

Support:

- 137.50/137.20

Recommendations:

Trading on the pair's market is possible within the intraday. In the first half of the day, purchases with a reduced lot can be successful. In the area of resistance, the pair's sales may become relevant.

Explanation: In the simplified wave analysis (UVA), waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The solid background of the arrows shows the formed structure, and the dotted one shows the expected movements.

Note: The wave algorithm does not take into account the duration of the instrument's movements in time!