FX.co ★ Simplified wave analysis and forecast for EUR/USD, USD/JPY, USD/CAD, GBP/JPY on August 19

EUR/USD

Analysis:

A correction plane has been forming on the chart of the European currency since the beginning of the year. Its structure looks complete. The quotes have reached the border of the strong support zone of the higher timeframe. There are no signals of an early change of direction.

Forecast:

Today, the general bearish course of the movement is expected to continue. In the next session, a short-term price rebound is not excluded, not above the resistance zone.

Potential reversal zones

Resistance:

- 1.1700/1.1730

Support:

- 1.1630/1.1600

Recommendations:

During the current day, trading activity on the European currency market can only manifest itself in the pair's sales. The support zone limits the potential of the daily downward movement.

USD/JPY

Analysis:

The direction of price movements of the main pair of the Japanese yen since the beginning of July is set by a bearish wave. Within its framework, the price has been forming a correction in the form of a stretched plane for the past month. The ascending section of August 16 showed that the correction structure is not complete for today.

Forecast:

Today, a general upward movement vector is expected, with the price rising towards the resistance zone by the end of the day. A short-term depreciation of the exchange rate is not excluded in the next session.

Potential reversal zones

Resistance:

- 110.40/110.70

Support:

- 109.70/109.40

Recommendations:

Today, trading on the Japanese yen market is possible only within the intraday with a fractional lot. Sales will become possible after the appearance of clear reversal signals in the area of the resistance zone.

USD/CAD

Analysis:

The direction of the price movements of the major Canadian currency is set by the descending wave algorithm of July 19. In the last three weeks, the price has formed a corrective zigzag, which has not been completed yet. The quotes have reached the lower limit of a strong resistance zone.

Forecast:

In the next day, the full completion of the current rise, a reversal formation, and a price decline are expected. The calculated zones indicate the probable boundaries of the daily range.

Potential reversal zones

Resistance:

- 1.2740/1.2760

Support:

- 1.2670/1.2640

Recommendations:

Trading on the pair's market in the conditions of correction today can lead to losses. Until clear sell signals appear, it is recommended to refrain from entering the Canadian dollar market.

GBP/JPY

Analysis:

Since March last year, the pound/yen pair had dominated the pair's chart, and an upward trend has dominated. Its last section started on July 19. The collection section (B) is nearing completion in the wave structure. The calculated support passes along the upper border of the potential reversal zone of a large TF.

Forecast:

A general downward vector of price movement is expected in the next day. The probability of a change in the exchange rate and the beginning of price growth increases.

Potential reversal zones

Resistance:

- 151.20/151.50

Support:

- 150.00/149.70

Recommendations:

Until the current decline is fully completed, purchases on the pair's market are premature. The calculated support limits the downside potential.

Explanations: 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 consider the duration of the instrument's movements in time!