FX.co ★ Weekly forecast for simplified wave analysis of GBP/USD, AUD/USD, EUR/JPY, #Ethereum on May 22

GBP/USD

Analysis:

The trend of the major of the British pound in the last two years has been directed to the "south" of the price chart. Having lost more than 20 price figures, the pair's quotes reached the border of a wide potential reversal zone. At this level, since May 5, the price has been forming a counter correction, which has not been completed yet.

Forecast:

In the next week, the general sideways course of movement is expected to continue. In the first days of the week, an upward vector is likely, with an increase in the resistance zone. Then you can count on a reversal of the price return to the support area. A further break down is likely in a more distant period.

Potential reversal zones

Resistance:

- 1.2600/1.2650

Support:

- 1.2360/1.2310

Recommendations:

Purchases on the British pound market in the coming days are possible only in fractional lots, within the framework of individual sessions. It is safer for the deposit to refrain from trading until the price rise is fully completed. It is optimal to track the signals for sale in the area of the calculated resistance.

AUD/USD

Analysis:

Since February last year, a downward wave zigzag has been forming on the weekly scale of the Australian dollar chart. The unfinished section has been counting since April 5. Within its framework, in the last decade, the price rolled up, forming a correction. After it ends, the price reduction will continue.

Forecast:

In the coming week, an upward movement vector is likely in the first days. In the area of the calculated resistance, the greatest probability of a reversal and a change of course. The greatest activity is likely by the end of the week. The support zone shows the lower limit of the expected weekly course of the pair.

Potential reversal zones

Resistance:

- 0.7110/0.7160

Support:

- 0.6830/0.6780

Recommendations:

Purchases on the Australian dollar market in the coming days are possible with a reduced trading lot within the framework of individual sessions. Conservative tactics: refrain from entering the pair's market until the end of the current correction, with tracking of sell signals at its end.

EUR/JPY

Analysis:

Two years ago, an upward wave started on the chart of the euro/Japanese yen cross. In its structure, the first two parts (A-B) are fully completed. In the final part (C), which started on March 7, a correction has been formed over the past two months, in the form of a horizontal stretched plane. The ascending section from May 12 has a reversal potential.

Forecast:

At the beginning of next week, the flat nature of the price movement is expected, mainly with a downward vector. In the second half of the week, there is a high probability of an increase in volatility, a reversal, and a resumption of price recovery. A breakthrough in the upper limit of the calculated resistance zone is not excluded already in the coming week.

Potential reversal zones

Resistance:

- 138.00/138.50

Support:

- 132.80/132.30

Recommendations:

Sales on the pair's market are possible only within the framework of individual sessions with a fractional lot. It is optimal to wait for the completion of the upcoming decline and at its end track the signals for the purchase of the instrument.

#Ethereum

Analysis:

A horizontal stretched plane has been forming on the Ethereum chart since May last year. The analysis of the structure shows the development of the final part of the wave (C). Within the framework of the last trend of the section, a counter pullback has been developing in the lateral plane since May 12. After its completion, the decline will resume.

Forecast:

In the coming week, it is expected that the sideways course of movement, which lasts for the last decade, will continue. A short-term upward vector is possible, no further than the boundaries of the resistance zone. By the end of next week, the probability of a change in the exchange rate and the resumption of the downward movement of the price increases.

Potential reversal zones

Resistance:

- 2210.0/2360.0

Support:

- 1680.0/1530.0

Recommendations:

Purchases of ether in the near future can bring profit only with short-term trading of a reduced lot. It is optimal to wait for the completion of the current rollback, staying out of the market, to enter the sale of cryptocurrencies at its end.

Explanations: In the simplified wave analysis (UVA), all waves consist of 3 parts (A-B-C). On each TF, only the last and 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 movements of the instruments in time!