26.01.201808:15 Forex Analysis & Reviews: Trade review for January 26 on simplified wave analysis

Review and forecast for AUD / USD

Since January 2016, the beginning of the last wave of the major pair Australian dollar remained incomplete until now based on observations shown in the daily scale chart of the AUD/USD pair. In September last year, the price approached the lower boundary of a wide zone of potential reversal. The structure of the whole wave was incomplete which could possibly assume for the formation of a counter interim correction from this zone.

In the descending wave of September 8, the middle part (B) is currently almost complete. Quotations of the pair reached again the critical zone, where one can expect for the change in the inter-trend direction.

The flatness of the movement is expected for today. In the morning, the increase in price completion is expected. Then, the change in the rate can be considered while the price direction moves down. The support zone shows the lower bound of the daily volatility of the pair.

Boundaries of resistance zones:

- 0.8070 / 0.8100

Boundaries of support zones:

- 0.8000 / 0.7970

Review and Forecast for GBP / JPY

The end of the geometrical figure "ascending pattern" across the region that has been forming since October 2016, finally rests on the upper limit of the potential turn area. In favor of an early change in the trend direction, the completeness of the current wave model structure is indicated, which is supported by the presence of the potential reversal structure. The bear's wave started on September 21. At the time of the analysis, the middle part of the zigzag (B) is almost completed. Evaluating this kind of structure as a whole forming figure, the forthcoming part of the wave (C) can have a limited range of downward movement.

There is a high probability of beginning a corrective decline for this day. The reversal is expected to happen in the afternoon, within the calculated resistance zone. The lower boundary of the daily course of the pair is the support zone.

Boundaries of resistance zones:

- 155.30 / 60

Boundaries of support zones:

- 154.40 / 153.90

Explanations to the figures: For simplified wave analysis, the simplest type of wave is used in the form of a zigzag, combining 3 parts (A; B; C). Of these waves, all kinds of correction are composed and most of the impulses. At each time frame, the last, incomplete wave is analyzed.

The areas marked on the graphs are indicated by the calculation areas, where 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.

Attention: 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.

* The presented market analysis is informative and does not constitute a guide to the transaction.