07.05.202110:30 Forex Analysis & Reviews: Simplified wave analysis and forecast for EUR/USD, AUD/USD, GBP/JPY, USD/CAD on May 7

EUR/USD

Analysis:

The chart of the main pair of the European currency continues to be dominated by an upward trend. In the last incomplete wave from the end of March, a complex horizontal correction is formed for three weeks. The correction structure looks complete. The wave level of the last ascending section is already sufficient to change the direction.

Forecast:

In the upcoming sessions, the pair's price is waiting for the continuation of the general sideways course of movement. After the pressure on the resistance zone, you can expect a return to the flat state. It is possible to roll back the price to the support area. A breakout of the resistance zone is more likely in the following days.

Potential reversal zones

Resistance:

- 1.2090/1.2120

Support:

- 1.2030/1.2000

Recommendations:

In the current situation, trading on the euro market carries an increased risk and is not recommended. It is optimal to refrain from entering the market until clear buy signals appear in the area of the support zone.

AUD/USD

Analysis:

The bulls have held the Australian dollar major market since the beginning of last year. The last section of the main course from April 1 is formed mainly in a side flat. The structure has completed the first two parts (A-B). The price growth that began on April 30 has a reversal potential and may be the beginning of the final part (C).

Forecast:

The next trading session is expected to see the end of the downward pullback and a reversal formation. At the end of the day or tomorrow, you can expect an increase in activity and a second attempt to increase the rate to the calculated resistance zone.

Potential reversal zones

Resistance:

- 0.7810/0.7840

Support:

- 0.7750/0.7720

Recommendations:

Selling the Australian dollar today is risky and can be unprofitable. It is recommended to monitor emerging signals for buying a pair in the area of the support zone.

GBP/JPY

Analysis:

The unfinished wave in the direction of the dominant bullish trend of the pound cross against the Japanese yen has been counting down since April 23. In the last two weeks, the price has been adjusted in a wide horizontal corridor. After the end of this wave, the price growth will continue.

Forecast:

Today, the general upward vector of the price movement of the pair is expected. At the European session, a short-term decline in the area of calculated support is not excluded. Increased activity is more likely by the end of the day.

Potential reversal zones

Resistance:

- 152.50/152.80

Support:

- 151.60/151.30

Recommendations:

Sales of the pair are risky today. Purchases of the pair remain the priority. It is better to limit trading transactions to individual sessions.

USD/CAD

Analysis:

Since March last year, the Canadian currency has continued to strengthen against the US dollar in the main pair. The price has reached the upper limit of the support zone, from which the quotes can drift or start a counter pullback.

Forecast:

In the upcoming trading sessions, there is a high probability of a general flat rate of movement. In the second half of the day, you can expect an attempt at price growth up to the boundaries of the calculated resistance. A rise in the price above is unlikely.

Potential reversal zones

Resistance:

- 1.2260/1.2290

Support:

- 1.2180/1.2150

Recommendations:

Despite the probability of price growth, purchases of the Canadian are risky. It is recommended to refrain from trading transactions during the price pullback and look for signals to sell at the end of it.

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 tool movements in time!