FX.co ★ Simplified wave analysis and forecast for EUR/USD and AUD/USD on December 29

EUR/USD

Analysis:

On the chart of the European currency, the upward trend continues. The last section of the main trend has been reporting since November 4. On December 21, the correction phase ended. After it, the conditions for a new break in the trend are formed in the flat. The price has come close to a strong resistance level.

Forecast:

In the coming day, there is a high probability of the beginning of a corrective decline. In the first half of the day, you can wait for the completion of the ascent and the transition to a sideways drift, forming a reversal. The price movement down is likely at the end of the day or tomorrow.

Potential reversal zones

Resistance:

- 1.2260/1.2300

Support:

- 1.2200/1.1060

Recommendations:

Today, the euro market has exhausted its potential for purchases, and the conditions for selling are not created. The optimal tactic is to refrain from trading.

AUD/USD

Analysis:

An upward trend is forming in the Australian dollar market. Its last unfinished section counts down from November 2. After the hidden correction that ended a week ago, a new bullish wave zigzag is formed. Since the end of last week, the price has been going sideways, forming the middle part (B).

Forecast:

Today, the price is expected to move mainly in the lateral plane between the opposite zones. At the European session, in the area of the resistance zone, you can expect a change in the direction of movement. The downward rate of movement is more likely at the end of the day.

Potential reversal zones

Resistance:

- 0.7610/0.7640

Support:

- 0.7550/0.7520

Recommendations:

The best tactic for the next day will be to refrain from entering the pair's market until the upcoming decline is fully completed.

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 one shows the expected movements.

Attention: The wave algorithm does not take into account the duration of the instrument's movements in time!