FX.co ★ Simplified wave analysis and forecast for EUR/USD, USD/JPY, GBP/JPY, GOLD on October 20

EUR/USD

Analysis:

The chart of the main pair of the European currency has been forming a downward wave zigzag since the beginning of this year. Within the final part (C) framework, a counter correction is formed in the last three weeks in the form of a stretched plane. Its structure looks complete. The price is at the lower limit of the resistance zone.

Forecast:

In the next day, it is expected that the current rise will be completed, a reversal in the resistance area, and the price will move down to the calculated support zone.

Potential reversal zones

Resistance:

- 1.1660/1.1690

Support:

- 1.1590/1.1560

Recommendations:

Today, trading in the European currency is possible only within the intraday, in fractional lots. Sales from the resistance zone are recommended.

USD/JPY

Analysis:

A bullish trend has dominated the Japanese yen market since the beginning of this year. As a result of the price growth, the quotes reached the boundaries of a wide potential reversal zone of the weekly scale of the chart. There are no signals of an imminent change of course on the chart.

Forecast:

In the coming day, the price is expected to move laterally between the nearest zones. At the European session, a short-term decline in the support area is not excluded. You can expect an increase in volatility and a return to the bullish vector.

Potential reversal zones

Resistance:

- 114.80/115.10

Support:

- 114.20/113.90

Recommendations:

There are no conditions for selling on the Japanese yen market today. It is recommended to refrain from entering the pair's market until the upcoming pullback is completed. The optimal zone for short-term purchases is settlement support.

GBP/JPY

Analysis:

The incomplete wave of the dominant upward trend on the pound/yen chart has been counted down since July 19. The final part (C) is formed in the wave. Quotes have reached intermediate resistance, where a short-term pullback is possible.

Forecast:

A sideways flat along the calculated support is likely in the next session. At the end of the day or tomorrow, you can expect an increase in volatility, with a return to the dominant rate of price movement.

Potential reversal zones

Resistance:

- 159.30/159.60

Support:

- 157.80/157.50

Recommendations:

In the pair's market, paying all attention to the search for signals to buy an instrument is recommended. The support zone is optimal for this.

GOLD

Analysis:

The unfinished wave structure on the gold chart is ascending from August 9. The final part (C) has been forming in the wave structure since September 29. As part of this movement, the price has been adjusted over the past week.

Forecast:

Today, the continuation of the mainly lateral course of movement is expected. In the first half of the day, pressure on the resistance zone is likely. At the end of the day or tomorrow, you can expect a vector change and a decrease in the support area.

Potential reversal zones

Resistance:

- 1780.0/1785.0

Support:

- 1755.0/1750.0

Recommendations:

The current conditions on the gold market are unfavorable for conducting trade transactions. It is recommended to monitor emerging purchase signals in the support area.

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 take into account the duration of the instrument's movements in time!