FX.co ★ Simplified wave analysis and forecast for EUR/USD, AUD/USD, GBP/JPY, USD/CAD on April 26

EUR/USD

Analysis:

Since March last year, the trend direction of the European currency has been set by the bullish wave algorithm. The upward wave of March 31 has a reversal potential. It gave rise to a new section of the trend. The structure of the movement has an impulse form.

Forecast:

In the next day, the current upward direction of movement is expected to continue. A short-term flat is possible in the European session. A decline in the support area is not excluded. The active growth phase is likely at the end of the day or tomorrow.

Potential reversal zones

Resistance:

- 1.2230/1.2250

- 1.2140/1.2170

Support:

- 1.2080/1.2050

Recommendations:

In the coming day, purchases of the instrument will prioritize trading transactions on the euro market. Sales may be unprofitable and are not recommended.

AUD/USD

Analysis:

The Australian dollar's major price has been driven up by a powerful momentum throughout the past year. Over the past four months, the pair's price has been moving sideways, along the strong zone of a potential large-scale reversal. On April 1, a new section in the main direction was launched.

Forecast:

Today, the pair's price is expected to move in the corridor between the nearest counter zones, mainly with an upward vector. Activity is more likely at the end of the day.

Potential reversal zones

Resistance:

- 0.7820/0.7850

Support:

- 0.7750/0.7720

Recommendations:

Today, trading on the "Aussie" market is more secure within the intraday. The priority is to buy a pair. It is more reasonable to reduce the trading lot in transactions.

GBP/JPY

Analysis:

Since the end of February, a complex horizontal correction wave has been forming on the pound/yen cross chart. Its structure has the form of a shifting plane. Currently, the price of the pair is in the area of strong support. On April 20, the final section of the downward movement started. Within its framework, a pullback has been developing since the end of last week.

Forecast:

The most probable is a flat mood of the price movement, with a general upward vector in the coming sessions. A reversal is expected to form upon reaching the resistance zone, and a price decline will begin.

Potential reversal zones

Resistance:

- 150.30/150.60

Support:

- 149.40/149.10

Recommendations:

Trading on the pair's market today is only possible in separate sessions. When buying, you should consider the limited growth potential. After the appearance of clear signs of a reversal, it is recommended to monitor the signals of your trading systems for the sale of the instrument.

USD/CAD

Analysis:

On the chart of the major Canadian dollar since March last year, the main rate of movement sets a downward momentum. Three months ago, the price reached the boundaries of a strong reversal zone. An incomplete wave of small-scale counts down from February 26. As part of the final part (C), a flat pullback has been forming over the past week.

Forecast:

Today, a mostly sideways course of price movement is expected. After the pressure on the support, you can expect a change in the vector, with the price rising to the area of the resistance zone. By the end of the day or tomorrow, the flat will likely end and a second attempt to decline.

Potential reversal zones

Resistance:

- 1.2530/1.2560

Support:

- 1.2450/1.2420

Recommendations:

In the current conditions, it is better to limit trading activity to individual sessions. Before the appearance of clear reversal signals, the priority is to sell the pair with a fractional lot.

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!