FX.co ★ Simplified wave analysis and forecast for EUR/USD, AUD/USD, GBP/JPY, USD/CAD on May 13

EUR/USD

Analysis:

The last unfinished section of the dominant bullish trend of the European currency has been counting down since the end of March. Since the beginning of May, a reversal wave structure (A-B) has been developing along the main course. The correction part is close to completion. The price has reached the boundaries of the intermediate support zone.

Forecast:

In the next day, the decline is expected to end, the formation of a reversal and the beginning of price growth. There may be an increase in volatility and a short-term puncture of the lower border of the support zone. The most significant activity is likely by the end of the day.

Potential reversal zones

Resistance:

- 1.2140/1.2170

Support:

- 1.2070/1.2040

Recommendations:

There are no conditions for selling euros today. It is recommended to refrain from entering the market until clear reversal signals appear to buy the instrument.

AUD/USD

Analysis:

In the Australian dollar market, a flat correction has been developing within the dominant bullish trend since the end of February. The descending section from May 10 has a reversal potential and may be the beginning of the final part (C) of the current wave structure.

Forecast:

Today, the pair's market is expected to have a general flat movement mood. In the next session, the probability of an upward vector is high. By the end of the day or tomorrow, we can expect a resumption of the decline, up to the levels of calculated support.

Potential reversal zones

Resistance:

- 0.7750/0.7780

Support:

- 0.7680/0.7650

Recommendations:

Trading on the Australian dollar market today is quite risky. Purchases before the end of the current decline are not recommended. In transactions, it is more reasonable to use a fractional lot.

GBP/JPY

Analysis:

Another unfinished section of the dominant bullish trend of the pound against the yen is counting down from April 23. By now, the price has reached the boundaries of a strong reversal zone. The high wave level of the downward movement from May 10 indicates the probability of the beginning of a counter correction.

Forecast:

In the first half of the day, the price is expected to move mainly in the horizontal plane. A descending vector is possible. In the area of the calculated support, you can expect a reversal with a subsequent return to the bullish rate.

Potential reversal zones

Resistance:

- 154.70/155.00

Support:

- 153.70/153.40

Recommendations:

There are no conditions for sales in the pair's market today. It is recommended to track the signals for buying the instrument in the area of the support zone. The calculated resistance limits the growth potential.

USD/CAD

Analysis:

For more than a year, the position of the Canadian dollar in the main pair against the US dollar has been strengthening. Oncoming movements do not exceed the pullback levels. The last ascending section has been counting since May 10 and is not completed at the analysis time.

Forecast:

The price will be adjusted up in the next session, with the generally flat nature of price fluctuations. The probability of a reversal and a return to the bearish vector of movement increases.

Potential reversal zones

Resistance:

- 1.2190/1.2220

Support:

- 1.2100/1.2070

Recommendations:

In the conditions of the dominant bearish trend, purchases of the pair are high-risk and are not recommended. It is optimal to refrain from entering the market during the rise, tracking the signals for selling the instrument in the area of the calculated resistance.

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 line shows the expected movements.

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