FX.co ★ Simplified wave analysis and forecast for EUR/USD and AUD/USD on January 26

EUR/USD

Analysis:

The last short-term wave of the euro towards the main trend started on November 4 last year. In its structure, the middle part (B) is nearing completion, in the form of a stretched horizontal plane. The bullish section from January 18 has not reached the reversal potential at this point.

Forecast:

Today, it is expected that the current price pullback down in the last two days will be completed. After the formation of a reversal, then you should expect an increase in volatility and a second rise in the area of the calculated resistance.

Potential reversal zones

Resistance:

- 1.2200/1.2230

Support:

- 1.2120/1.2090

Recommendations:

Transactions on the euro market today are possible only in the framework of trading sessions with a reduced lot. There are no conditions for the sale. Purchases from the support zone are recommended.

AUD/USD

Analysis:

The rising wave of the Australian dollar, which started in March last year, approached a strong zone of a potential reversal of the senior TF. After contact with the lower border for the last three weeks, the quotes move in the lateral plane, forming an intermediate correction.

Forecast:

The current decline is expected to end in the next trading session. Towards the end of the day, you can expect a change of course and a return to the upward vector of movement. In the event of a reversal, an increase in volatility and a puncture of the lower support border are not excluded.

Potential reversal zones

Resistance:

- 0.7750/0.7780

Support:

- 0.7680/0.7650

Recommendations:

There are no conditions for selling the pair today. It is recommended to track the reversal signals for the purchase of the instrument. In flat conditions, it is more reasonable to reduce the lot size.

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 tool movements in time!