FX.co ★ Simplified wave analysis and forecast for EUR/USD, AUD/USD, GBP/JPY, USD/CAD on May 4

EUR/USD

Analysis:

The direction of the price movement of the European currency in the short term is set by the upward wave of March 31. Since April 19, a horizontal correction in a shifting plane has been forming in its structure. The structure of this movement to the current day looks complete. Yesterday's upward movement has a reversal potential. After the rollback, the growth of the exchange rate will continue.

Forecast:

In the next trading sessions, the bearish vector of movement is expected to end, forming a reversal and the beginning of a price rise. When changing the course, a short-term puncture of the lower border of the support zone is not excluded. The ascending stage is likely at the end of the day or tomorrow.

Potential reversal zones

Resistance:

- 1.2080/1.2110

Support:

- 1.2010/1.1980

Recommendations:

Until clear buy signals appear, trading on the euro market can be unprofitable and is not recommended.

AUD/USD

Analysis:

On the chart of the main pair of the Australian dollar, the trend sets a bullish momentum. After another rollback, a new section of the main course started on April 1. Since April 20, the price has been adjusted in the horizontal plane. The correction structure looks complete. The ascending section that started last Friday has a reversal potential.

Forecast:

You can expect the end of the flat movement and the beginning of an active price rise in the current day. In the European session, a sideways mood with a downward vector is more likely. The increase in volatility and the growth of the exchange rate can be expected at the end of the day or tomorrow.

Potential reversal zones

Resistance:

- 0.7770/0.7800

Support:

- 0.7710/0.7680

Recommendations:

Today, trading is possible only within the framework of individual trading sessions in fractional lots. Sales can be risky and are not recommended. The main attention should be paid to the search for signals for the purchase of the instrument.

GBP/JPY

Analysis:

The price was moving upward on the chart of the pound/yen cross since March last year. By February, the quotes reached the lower limit of a strong reversal zone. From this time on, the price moves mainly sideways, forming an incorrect correction. The ascending section from April 23 has a reversal potential and may be the beginning of a new wave of the trend. Since the end of last week, the price has been rolling down.

Forecast:

Today, a mostly flat mood of movement between the nearest oncoming zones is expected. A decline to the support zone is likely in the next session. Then you can count on a change of course and a rise in the area of the calculated resistance.

Potential reversal zones

Resistance:

- 152.30/152.60

Support:

- 151.30/151.00

Recommendations:

Until the full completion of the downward correction, trading on the pair's market is possible only within the framework of individual trading sessions with a reduced lot, according to the expected sequence of movements. When reversal signals appear in the area of the support zone, it is recommended to focus on purchases.

USD/CAD

Analysis:

The direction of the price movement of the main pair of the Canadian dollar is set by the bearish wave of March 19 last year. The price is approaching the lower limit of the strong reversal zone of a large TF. In the structure of the wave, there is a need for correction. There are no reversal signals on the chart of the pair yet.

Forecast:

In the first half of the day, a general flat rate of movement is expected today. An upward vector is more likely. In the area of the calculated resistance, by the end of the day, you can expect a change in the exchange rate and a resumption of price decline up to the calculated support.

Potential reversal zones

Resistance:

- 1.2320/1.2350

Support:

- 1.2250/1.2220

Recommendations:

Until clear reversal signals appear, the pair's purchases are premature. It is recommended to track signals for selling the pair in the area of the resistance zone.

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!