Simplified wave analysis of GBP/USD, AUD/USD, USD/CHF, USD/CAD, February 4

GBP/USD

Wave analysis:

In the short term, the uncompleted wave has been building since November last year. On January 27, the final part of the wave (C) began to develop. The wave has an impulse form with small rollbacks.

Outlook:

The pound sterling is expected to maintain its upward movement today. In the first half of the day, it may be trading flat the support zone. The resistance zone is located on the lower border of a potentially large-scale reversal zone.

Potential reversal areas

Resistance

- 1.3680/1.3710

Support

- 1.3590/1.3560

Tips:

Today, it is recommended to open long positions on the pound/dollar pair at the support level. Please, keep in mind that a deep correction may begin in the resistance zone.

AUD/USD

Wave analysis:

Since February last year, the Australian dollar has been weakening against the US currency. There is an unfinished section of the downward wave that originated on January 13. The ascending part of the chart that began on January 28 does not exceed the correction wave. The resistance level is located at the lower boundary of the target zone.

Outlook:

At the next trading session, the pair is likely to move sideways near the boundaries of the support zone. At the end of the day or tomorrow, it is likely to resume an upward movement.

Potential reversal areas

Resistance:

- 0.7200/0.7230

Support:

- 0.7130/0.7100

Tips:

There are no entry points to open short positions on the Aussie. It is recommended to look for buy signals in the support area.

USD/CHF

Wave analysis:

Since June last year, the Swiss franc has been forming a downward wave, moving mainly in the narrow range. Last month, price fluctuations changed the layout of the emerging wave structure. In fact, the formation of the middle part of the wave (B) is still underway. In the last decade, the price has been declining.

Outlook:

Today, the pair is expected to trade in the sideways channel between the nearest support and resistance areas. In the first half of the day, an upward movement may occur. At the end of the day, the pair is likely to resume a downward movement.

Potential reversal areas

Resistance:

- 0.9230/0.9260

Support:

- 0.9160/0.9130

Tips:

In the near future, it is better to stick to fractional trading when opening positions on the Swiss franc.

USD/CAD

Wave analysis:

Wave analysis of the Canadian dollar shows that the upward structure that originated on May 18 is incomplete. Since December 20, a bearish zigzag (B) has been formed. At the time of making the analysis, the quotes have almost reached the lower limit of the strong resistance on a large chart. The downward section that developed on January 28 may trigger a reversal potential. It could be the final part of the correction.

Outlook:

Over the next few days, the price is expected to move sideways. In the first half of the day, the pair is likely to rise.

Potential reversal areas

Resistance:

- 1.2730/1.2760

Support:

- 1.2660/1.2630

Tips:

The pair s trading flat. So, trading activity may be low. for this reason, the Canadian dollar may decline. It is recommended to refrain from opening new positions, looking for clear sell signals in the resistance area.

Explanation: In simplified wave analysis, waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The arrows show the formed structure, the dotted one shows the expected movements.

Important: The wave layout does not take into account the duration of the movements of the instrument in time!