Simplified wave analysis of EUR/USD and AUD/USD on February 7

EUR/USD

Analysis:

Since the end of December last year, the direction of the European currency is set by a downward wave. The movement has reached the upper limit of the wide zone of a potential reversal of the senior time frame and the wave structure is incomplete.

Forecast:

It is unlikely that the current decline of the pair will be able to break through the support zone without preparation. In the coming trading sessions, a counter corrective movement is expected to form on the euro chart and most likely, in the form of a side flat.

Potential reversal zones

Resistance:

- 1.1000/1.1030

Support:

- 1.0940/1.0910

Recommendations:

Trading on the euro market today is recommended only within the intraday trading style. Sales are a priority. For longer-term investments, you should wait until the correction lift is completed and look for sell signals.

AUD/USD

Analysis:

A global downward trend has been forming on the Australian currency chart for the past 2 years. Its last section has been reporting since the end of last year. By the current day, the price has reached a strong support level and a hidden correction is completed.

Forecast:

Formally, the wave structure is ready to continue its downward movement. Alternatively, in the coming sessions, it is possible to form an intermediate pullback up, no further than the nearest resistance zone. A price breakthrough is more likely at the end of the day or at the beginning of the next week.

Potential reversal zones

Resistance:

- 0.6760/0.6790

Support:

- 0.6700/0.6670

- 0.6590/0.6560

Recommendations:

Aussie purchases are possible today, but high-risk. It is safer to refrain from trading at the time of the rollback and look for signals to sell the instrument at the end of it.

Explanations: 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 tool's movements in time!