FX.co ★ Simplified wave analysis and forecast for EUR/USD, USD/JPY, USD/CAD, GBP/JPY on August 16

EUR/USD

Analysis:

Large-scale analysis of the chart of the European currency shows: since last summer, the direction of the pair's movement is set by the algorithm of complex correction in the form of a shifting plane. By now the wavestructure looks complete. The price is near the upper limit of the strong potential reversal zone. There are no reversal signals on the chart.

Forecast:

Today, the price is expected to move mostly flat in the corridor between the nearest counter zones. In the European session, a price rise to the resistance zone is possible. By the end of the day, a change in the vector is highly expected and the price will rebound.

Potential reversal zones

Resistance:

- 1.1820/1.1850

Support:

- 1.1750/1.1720

Recommendations:

Today, trading in the euro market will be safe only within individual sessions with a small lot. Selling will be possible after the formation of reversal signals in the resistance area.

USD/JPY

Analysis:

A descending plane is formed on the Japanese jen chart from the end of March. The wave structure has not completed its final part. Since August 11, within the wave framework the final section (C) has started. The price reached the upper limit of the potential reversal zone of a large TF.

Forecast:

Today, a general downward vector of price movement is expected. In the first half of the day a short-term rebound to the resistance area is possible. The highest activity of the pair is likely to be at the end of the day or tomorrow.

Potential reversal zones.

Resistance:

- 109.60/109.90

Support:

- 108.90/108.60

Recommendations:

Buying the Japanese yen today may lead to losses. It is recommended to put emphasis on trades of the instrument sale at the end of ascending rebounds.

USD/CAD

Analysis:

Since July 19, a downward reversal pattern has been developing on the chart of the Canadian dollar pair. For the last month and a half, a correction in the horizontal plane has been formed in the wave structure. It lacks its final part (C).

Forecast:

Today, the pair's market is expected to move sideways. The probable range of fluctuations is marked by the limits of the settlement zones. In the first half of the day, the general ascending vector is possible. Reversal formation and price decrease to the support area are more likely by the end of the day.

Potential reversal zones

Resistance:

- 1.2580/1.2610

Support:

- 1.2510/1.2480

Recommendations:

Trading in the Canadian dollar market today is risky and may be unprofitable. It is recommended to refrain from entering the pair's market until the correction stops, and at its end to track the sell signals.

GBP/JPY

Analysis:

Since July 19, a new bullish trend has been developing on the chart of the cross pair GBP/JPY. Over the past month, a corrective extended plane, which has not yet been completed, took its shape in the wave structure.

Forecast:

In the next day, the completion of the current correctional structure, the formation of the reversal and the price rise are expected. With the change of rate, a short-term piercing to the next support zone is likely.

Potential reversal zones

Resistance:

- 152.10/152.40

Support:

- 151.20/150.90

- 150.10/149.80

Recommendations:

There are no conditions for selling in the pair's market today. It is recommended to monitor the emerging signals to buy the cross.

Explanation: In the simplified wave analysis (SWA) waves consist of 3 parts (A-B-C). The last unfinished wave is analyzed. The solid arrow background shows the formed structure, the dotted arrow shows the expected movements.

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