FX.co ★ Simplified wave analysis and forecast of EUR/USD, USD/JPY, GBP/JPY, GOLD for April 18

EUR/USD

Analysis:

The downward wave of the European currency chart, which started at the beginning of last year, is approaching the upper limit of a powerful potential reversal zone on the weekly scale. The unfinished section of the trend has been reported since February 4. The final part (C) is formed in the wave structure.

Forecast:

Over the next few days, the completion of the downward movement vector, the formation of a reversal, and a price rise to the area of the calculated resistance are expected. The general nature of the upcoming movement is likely flat.

Potential reversal zones

Resistance:

- 1.0860/1.0890

Support:

- 1.0770/1.0740

Recommendations:

The potential for sales in the euro major market has been exhausted. After the appearance of confirmed reversal signals in the area of the support zone, short-term purchases of the instrument with a fractional lot will become possible.

USD/JPY

Analysis:

The upward trend of the main pair of the Japanese yen led the quotes to the area of a powerful resistance zone of the monthly timeframe of the chart. Since March 28, a descending section with a reversal potential has been formed, after which an upward pullback began to develop. Judging by the appearance of its structure, a descending stretched plane is formed.

Forecast:

During the current day, the bullish mood of the price movement is expected to end. Further, in the area of the resistance zone, a reversal is likely to form and the beginning of a price decline. In the process of changing the course, an increase in volatility and a short-term puncture of the upper limit of the resistance zone is not excluded.

Potential reversal zones

Resistance:

- 127.50/127.80

Support:

- 126.30/126.00

Recommendations:

Today, short-term trading transactions in small lots are possible on the yen chart within the framework of individual trading sessions. Sales will become possible after the appearance of reversal signals confirmed by your vehicle in the resistance area.

GBP/JPY

Analysis:

On the chart of the English pound/Japanese yen cross pair, an incomplete section of the uptrend has been counting down since March 8. Since March 28, a counter correction of the wrong kind has been developing within its framework. Its structure lacks the final part. The price is approaching the upper limit of a powerful resistance zone of a large TF.

Forecast:

On the current day, the price is expected to move in the lateral plane between the nearest zones in the opposite direction. In the first half of the day, a downward vector is more likely. At the end of the day or tomorrow, you can expect a resumption of activity and a second attempt to pressure the resistance zone.

Potential reversal zones

Resistance:

- 165.40/165.70

Support:

- 164.10/163.80

Recommendations:

Today, on the pair's chart, after the appearance of signals in the area of the support zone, short-term purchases with a fractional lot are possible.

GOLD

Analysis:

On the gold chart, the unfinished wave structure from March 8 is directed to the "south" of the chart. Within its framework, the correction part (B) is formed. The price is approaching the lower limit of strong resistance.

Forecast:

In the upcoming trading sessions, the upward course of the movement is expected to continue, until its completion in the area of the resistance zone. Further, with a high probability, you can expect the formation of a reversal and a pullback of the price.

Potential reversal zones

Resistance:

- 2005.0/2010.0

Support:

- 1975.0/1970.0

Recommendations:

Today, short-term purchases of small lots are possible on the gold market. It is worth considering the limited potential of the current recovery. The sale will become possible only after the appearance of reversal signals in the area of the resistance zone, confirmed by your vehicle.

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 movements of the instrument in time!