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GBP/USD
Analysis:
The structure of the British pound's descending wave, which started last February, has reached a strong potential reversal zone. Currently, its structure looks completed. The potential of the upward movement from June 14 exceeds the pullback level of the final part of the trend. If the bearish section from June 16 does not go beyond the correction, a new uptrend will form.
Outlook:
A sideways movement is likely to continue during the next trading days until it ends near the support level. Then a reversal and renewal of ascending movement to levels of settlement resistance is possible.
Potential reversal zones
Resistance:
- 1.2500/1.2550
Support:
- 1.2180/1.2130
Recommendations:
Trading in a flat market can lead to losses in the near term. It is advisable not to carry out trades until confirmed buy signals form in the area of calculated support.
AUD/USD
Analysis:
The downtrend was the reason why the Australian dollar reached the area of a strong support zone of the senior timeframe. The counter movement does not exceed the correction of its final part. Quotes have been moving mostly sideways over the past two weeks, forming a corrective plane.
Outlook:
The pair's further general sideways movement mainly with an upward vector is possible in the coming days. A return to downward movement is most likely by the end of the week.
Potential reversal zones
Resistance:
- 0.7080/0.7130
Support:
- 0.6850/0.6800
Recommendations:
Short-term purchases of the aussie with small lots will be possible in the coming days. It is better to consider the limited potential of the upcoming growth.
USD/CHF
Analysis:
On the chart of the Swiss franc, the upward wave lasting for a year and a half ended. The potential of the bearish wave, started on June 14, exceeds the pullback wave level of the final part of the trend. If the wave is confirmed by the completed middle part (B), it will build a counter wave, i.e. form at least a full-fledged correction.
Outlook:
During this week, the price is likely to move gradually from the resistance level to the support area. Then the pair's reversal and new rise is possible.
Potential reversal zones
Resistance:
- 0.9640/0.9690
Support:
- 0.9290/0.9250
Recommendations:
It will be possible to trade only in small lots on the franc market within the next few days. It is better not to enter the pair's market until buying signals in the support area form.
EUR/JPY
Analysis:
The EUR/JPY pair has been forming a strong upward trend over the past two years. The incomplete upward section of the trend from May 12 is close to the lower boundary of the potential reversal zone. The wave structure is likely to start a correction.
Outlook:
The current growth is likely to end and the price will move sideways in the coming days. A reversal formation and the price downward movement to the settlement support zone is possible by the end of the week.
Potential reversal zones
Resistance:
- 144.00/144.50
Support:
- 139.80/139.30
Recommendations:
There will be no conditions for buying the pair within the next few days. Sales will be possible within separate sessions in small lots. It is better not to enter the pair's market before the forthcoming decline ends and buying signals form in the support area.
US Dollar Index
Analysis:
The US dollar index continues its upward movement on the chart. The quotes reached the lower boundary of the strong potential monthly reversal zone. The wave structure from June 16 ended a complex correction in the form of a shifting plane. The subsequent upward section has reversal potential.
Outlook:
The US dollar's flat movement is likely to complete by the end of the week. A reversal formation and renewal of ascending trend is possible in the area of the calculated support.
Potential reversal zones
Resistance:
- 106.00/106.50
Support:
- 103.20/102.70
Recommendations:
The US dollar will strengthen in the next few days. This period may last for several weeks. Therefore, it is advisable to focus on weakening national currencies in the major currency pairs.
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 background shows the expected movements.
Note: The wave algorithm does not take into account the duration of the instrument's movements in time!
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