FX.co ★ Simplified wave analysis and forecast for EUR/USD, AUD/USD, and GBP/JPY on January 18

EUR/USD

Analysis:

An upward trend is forming in the euro market. Within the framework of the unfinished section that began in November, a counter correction of a complex form is formed from strong resistance. Since January 6, the pair's quotes have been moving down, forming the final part of the correction.

Forecast:

In the coming day, the general downward mood of the price movement of the pair is expected. In the next session, a short-term rise in the resistance area is possible. In the event of a breakout of the nearest support zone, a further decline to the next zone is likely today.

Potential reversal zones

Resistance:

- 1.2080/1.2110

Support:

- 1.2020/1.1990

- 1.1930/1.1900

Recommendations:

There are no conditions for buying the euro today. The main attention should be paid to sales. It is necessary to take into account the limited potential of the current decline.

AUD/USD

Analysis:

There is an upward trend in the Australian dollar market. The quotes approached the lower limit of the strong zone of a potential large-scale reversal. As part of the last completed section on November 2, the price has been forming a flat correction since the beginning of this year.

Forecast:

During the current day, the price is expected to complete its downward course, form a reversal, and return to the upward rate. The boundaries of the expected price range indicate the calculated zones. When the exchange rate changes, an increase in volatility is not excluded, with a puncture of the lower support border.

Potential reversal zones

Resistance:

- 0.7730/0.7760

Support:

- 0.7660/0.7630

Recommendations:

Sales of the Australian dollar have small potential and can be unprofitable. Until clear reversal signals appear, it is recommended to refrain from trading the pair.

GBP/JPY

Analysis:

An upward trend has been developing on the pair's chart since March last year. The last unfinished section counts down from December 21 last year. From the intermediate resistance zone from last week, the quotes are corrected downwards. The price is approaching strong support.

Forecast:

The current downward trend is expected to end over the next 24 hours. By the end of the day, you can expect an increase in volatility, a reversal, and a second attempt to rise.

Potential reversal zones

Resistance:

- 141.20/141.50

Support:

- 140.30/140.00

Recommendations:

There is no condition for sales of the pair today. It is recommended to skip the current decline and look for signals to buy the instrument at its end.

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.

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