FX.co ★ Simplified wave analysis and forecast for EUR/USD, AUD/USD, GBP/JPY on March 5

EUR/USD

Analysis:

Since January 6 of this year, the quotes of the European currency have been rolling down from the lower border of the strong reversal zone. The correction structure has a clear sequence (A-B-C). The wave is approaching the upper limit of strong support, where the end of the entire bearish wave is possible.

Forecast:

Today, the pair's downward course will continue. In the next trading session, a short-term flat is possible, with pressure on the resistance zone. Increased activity is expected by the end of the day.

Potential reversal zones

Resistance:

- 1.1970/1.2000

Support:

- 1.1890/1.1860

Recommendations:

Until the appearance of clear signals of a reversal and the completion of the entire correction, purchases in the euro market are premature. Sales should take into account the limited downside potential.

AUD/USD

Analysis:

Upward momentum is forming on the chart of the Australian dollar major. All oncoming traffic is hidden and has the wrong kind of structure. The last correction ended on February 26. From this time on, the price forms an upward reversal structure, in which the intermediate pullback (B) is completed.

Forecast:

During the current day, the full completion of the downward movement, a reversal, and the beginning of price growth is expected. The boundaries of the probable range of the pair's course are indicated by the calculated zones. When changing the course, a short-term puncture of the lower support border is not excluded.

Potential reversal zones

Resistance:

- 0.7750/0.7780

Support:

- 0.7680/0.7650

Recommendations:

Until the appearance of clear reversal signals, it is recommended to refrain from entering the pair's market. The priority is to buy an instrument.

GBP/JPY

Analysis:

As a result of the one-year upward trend, the quotes of the pound cross against the yen reached the zone of strong resistance. Since yesterday, a small-scale descending structure with a reversal potential has been formed. This may be the beginning of a counter wave.

Forecast:

The most likely scenario of the pair's movement today will be a flat between the nearest oncoming zones. After an attempt to put pressure on the resistance zone, the price will turn and decline to the support area. A breakthrough beyond the calculated zones is unlikely.

Potential reversal zones

Resistance:

- 150.30/150.60

Support:

- 149.40/149.10

Recommendations:

Trading on the pair's market today can be risky. It is more reasonable to reduce the lot as much as possible. Until there are clear signals of a change in the exchange rate, sales are not recommended.

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!