FX.co ★ Simplified wave analysis of EUR/USD and AUD/USD as of January 29

EUR/USD

Analysis:

The bearish wave has been developing on the European currency chart since June last year. Analysis of the daily chart shows that this section completes the wave of the global euro trend. Since the beginning of this year, the price has been declining, forming the final part of the wave (C).

Forecast:

In the coming day, the downward trend will continue. A short-term price increase is possible in the European session. A puncture of the upper boundary of the resistance zone is not excluded. Next, it is expected to return to the main movement vector and move the price to the settlement support.

Potential reversal zones

Resistance:

- 1.1030/1.1060

Support:

- 1.0960/1.0930

Recommendations:

There are no conditions for the purchases of the euro today. It is recommended to track the instrument's sell signals in the area of the resistance zone.

AUD/USD

Analysis:

A complex downward wave has been developing on the Australian dollar major chart since September. For the past month, the price formed the final part (C). The price has reached the level of strong support for a large TF. The wave structure is not complete.

Forecast:

Today, the most likely scenario for the pair's price movement will be "sideways". A general upward vector is expected. This movement may be delayed for the whole day, however, the option of a reversal and price decline at the end of the day is not excluded.

Potential reversal zones

Resistance:

- 0.6800/0.6830

Support:

- 0.6740/0.6710

Recommendations:

Purchases of the "Aussie" are possible today, however, it is risky and can be unprofitable. The best tactic is to refrain from trading while the price is rolling back up and sell the pair after the reversal signals appear.

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!