FX.co ★ Simplified wave analysis and forecast for EUR/USD, AUD/USD, USD/CHF, and GBP/JPY on July 12

EUR/USD

Analysis:

In the European currency market, the calculation of the prospects for short-term movements depends on the time required for the completion of the previous correction and the beginning of a new upward wave. Since June 18, a wave structure has been developing on the chart, which can become a reversal. The structure of this wave lacks the final part.

Forecast:

In the coming day, the price is expected to move in the side corridor between the opposite zones. At the European session, pressure on the resistance zone is likely. You can expect a change of direction closer to the end of the day.

Potential reversal zones

Resistance:

- 1.1890/1.1920

Support:

- 1.1820/1.1790

Recommendations:

Today, purchases of the euro have minimal potential and can lead to losses. It is recommended to refrain from entering the market until clear sell signals appear in the area of the resistance zone. It is safer to reduce the trading lot in transactions.

AUD/USD

Analysis:

The direction of price fluctuations of the Australian dollar major is set by the algorithm of the descending wave from February 25. The wave structure is not complete at the time of analysis. The last unfinished section started on July 7. Within its framework, a rollback has been formed since last Thursday. The boundaries of the long-range support show the upper limit of the preliminary target zone.

Forecast:

In the next day, it is expected that the current price rise will end, the formation of a reversal and the beginning of a decline. A breakthrough of the lower limit of the nearest support may occur today.

Potential reversal zones

Resistance:

- 0.7500/0.7530

Support:

- 0.7440/0.7410

- 0.7340/0.7310

Recommendations:

The potential for growth in the pair's market is limited. It is better to close purchases at the first signals of a reversal. It is optimal to refrain from entering the market until clear sell signals appear in the area of the calculated resistance zone.

USD/CHF

Analysis:

After the large-scale horizontal correction that ended on June 18, the direction of price movements of the Swiss franc is set by the descending wave algorithm. The structure of this movement has the form of a stretched plane. The price is in the area of intermediate support.

Forecast:

Today, in the first half of the day, we can expect a continuation of the flat mood of the movement. An upward vector is likely, with the price rising to the resistance zone. At the end of the day, you can expect a return to the bearish rate. If the lower limit of the nearest support is broken, the decline will continue to the next zone.

Potential reversal zones

Resistance:

- 0.9200/0.9230

Support:

- 0.9140/0.9110

- 0.9040/0.9010

Recommendations:

Conditions are unfavorable for franc purchases today. It is recommended to monitor all emerging signals for the sale of the instrument.

GBP/JPY

Analysis:

The pound/yen pair's chart has been dominated by an upward trend since the beginning of last year. On June 21, the hidden counter correction ended. Since that time, the price forms a reversal wave structure, which gave rise to a new round of the trend wave. On July 8, the final section (C) started in its structure.

Forecast:

Over the next day, the price will move in the corridor between the opposite zones. At the European session, we can expect a downward vector. An increase in activity and price growth is more likely by the end of the day.

Potential reversal zones

Resistance:

- 153.50/153.80

Support:

- 152.50/152.80

Recommendations:

Sales on the pair's market today can lead to losses. It is recommended to refrain from trading on the pair's market during the price pullback and look for buy signals at its end.

Explanations: 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 pair's movements in time!