28.07.201707:50 Forex Analysis & Reviews: Trade review for July 28 by simplified wave analysis

Overview of AUD / USD with the current day forecast

Analysis of the weekly scale of the major chart shows the formation of the upward wave model since 2008. The current 5-year decline has formed the corrective part of the wave (B). Its downward potential is almost exhausted. The wave logic indicates the need to return the price of the pair in the long term, at least to parity with the US currency.

Forming the correction from the beginning of last year, the bullish section of the graph reached the lower threshold of the preliminary target zone.

Today, the flattering mood of movements is more likely. In the morning, pressure on the support zone is possible. Towards the end of the day, the main upward trend is expected to resume.

Boundaries of the resistance zone:

- 0.8040 / 70

Boundaries of the support zone:

- 0.7950 / 20

Overview of #USDX (US dollar index) with the current day forecast

On the graph of the US dollar index, the formation of a descending stretched plane continues for the last 2 years. The last section of the corrective wave deprived the US dollar of 10% of the value from the beginning of the year. The quotations of the instrument have reached the top level of the wide potentially reversal plot of the chart. Given that the structure of the correction is not complete, there is no need to change the direction of the trend. Nevertheless, the formation of an upward correction retracement in the near future is almost guaranteed.

Within the current short-term wave, a latent correction is being formed from the end of May. To complete it there is not enough of the final part.

Today, the formation of conditions for changing the direction of the inter-trend is most likely. At the nearest trading session, a short-term depreciation to the support area is possible. The ascending phase of the movement is expected at the end of the day. The daily range of the instrument limits the resistance zone. Do not exclude the breakthrough of its upper boundary within the current day.

Boundaries of the resistance zone:

- 94.25 / 35

Boundaries of the support zone:

- 93.65 / 55

Explanations to the figures: For simplified wave analysis, a simple type of wave is used that combines 3 parts (A; B; C). Of such waves, all kinds of correction are composed and most of the impulses. On each considered time-frame the last, incomplete wave is analyzed.

The zones marked on the graphs are indicated by the calculation areas in which the probability of a change in the direction of motion is significantly increased. Arrows indicate the wave counting according to the technique used by the author. The solid background of the arrows indicates the structure formed, the dotted one indicates the expected wave motion.

Note: The wave algorithm does not take into account the duration of the tool movements in time. The forecast is not a trading signal! To conduct a trade transaction, you need to confirm the signals of your trading systems.