Weekly forecast based on simplified wave analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, EUR/GBP, and Gold
September 25, 2023 10:23 am
EUR/USD
Brief analysis:
A downward trend since the end of July has been pushing down the chart of the main European currency pair. The price continues its movement along a strong support zone that began a week ago. The wave level of countermovements is insufficient to initiate a reversal. Without the formation of a correction, the continuation of the bearish trend is unlikely.
Weekly Forecast:
In the next couple of days, we can expect a continuation of the sideways movement of the euro along the support zone. Further, the formation of conditions for a reversal and the beginning of a price increase are likely. The price may rise to the calculated resistance levels. A breakthrough during the weekly period is unlikely.
Potential Reversal Zones:
Resistance:
1.0860/1.0910
Support:
1.0660/1.0610
Recommendations:
Buy: Can be used in trading during individual sessions with reduced volume after confirming signals appear.
Sell: This is risky and may lead to losses in the coming days.
USD/JPY
Brief analysis:
Since mid-July, the Japanese yen chart has developed an upward impulse. The first two parts (A and B) have been fully formed. Starting on September 11, the final part (C) has begun. In the last two weeks before the start of an active rise, quotes will form an intermediate correction in the form of an elongated flat.
Weekly Forecast:
In the next few days, the most likely scenario will be sideways movement along the calculated support levels. After the weekend, we can expect an increase in volatility, a reversal, and the beginning of an active rise in the exchange rate. The release of important news blocks may serve as a temporary reference point.
Potential Reversal Zones:
Resistance:
150.00/150.50
Support:
147.50/147.00
Recommendations:
Sell: Due to their low potential, they are highly risky and may lead to losses.
Buy: This may become the main trading direction after the appearance of reversal signals in the support zone, according to your trading system.
GBP/JPY
Brief analysis:
During the past week, a descending wave that started in mid-August ended for the pound/yen cross pair. This segment fully corrected the previous upward trend section on a larger scale. The ascending section starting from September 21 has reversal potential. After its confirmation, it will begin a new short-term upward trend.
Weekly Forecast:
In the coming days, predominantly sideways price movement is expected along the support zone levels. By the end of the week, the flat period is expected to end, with a reversal and the start of an active rise in the exchange rate. Increased volatility may coincide with the release of important news blocks.
Potential Reversal Zones:
Resistance:
184.00/184.50
Support:
180.80/180.30
Recommendations:
Sell: Have low potential and may lead to losses.
Buy: Will become relevant after the appearance of confirmed signals for opening deals in the support zone.
USD/CAD
Brief analysis:
The current wave structure on the Canadian dollar chart is upward and has been counting since mid-July. In the last one and a half months, a corrective part (B) in the form of an elongated flat is forming. The structure of this wave is completed. The potential of the bullish price segment that started on September 19 exceeds the retracement level.
Weekly Forecast:
In the next few days, there is a high probability of flat movement with a downward vector. The price movement downwards is expected no further than the lower support boundary. In the second half of the week, we can expect a reversal and a resumption of the upward exchange rate. The calculated resistance represents the most likely completion point for the entire wave.
Potential Reversal Zones
Resistance:
1.3590/1.3640
Support:
1.3370/1.3320
Recommendations
Selling: Fractional lots may be used in separate sessions. The potential is limited by support.
Buying: Will become relevant after the appearance of confirmed signals in the support zone, confirmed by your trading system (TS).
NZD/USD
The major pair of the New Zealand dollar has been moving downward for the past three months. Since September 5, quotes have mostly moved sideways along strong support, forming a correctional part (B).
Weekly Forecast:
In the next few days, the bullish course of movement will likely continue, with an increase in price towards the resistance zone boundaries. Subsequently, a sideways flat, a reversal, and a resumption of the price decline for the pair can be expected.
Potential Reversal Zones
Resistance:
0.6000/0.6050
Support:
0.5850/0.5800
Recommendations
Buying: Fractional lots may be possible in separate sessions.
Selling: After confirmed reversal signals appear in the resistance zone, they may become the main direction in trading for this pair.
EUR/GBP
Brief Analysis:
Since September of last year, the formation of a horizontal descending flat has continued. The middle part (B) is approaching completion in the wave structure. Quotes are confined within a narrow price corridor between the 88th and 86th figures.
Weekly Forecast:
The overall upward trend can be continued in the first few days of the upcoming week. Closer to the weekend, there is a high probability of a change in direction and a resumption of the downward price movement.
Potential Reversal Zones
Resistance:
0.8730/0.8780
Support:
0.8550/0.8500
Recommendations
Buying: Have limited potential and may result in losses.
Selling: Signals from your trading systems will become relevant after the formation of reversal signals in the resistance zone.
Gold
Analysis:
Since March of this year, gold prices have predominantly drifted sideways. On the daily scale of the chart, this segment forms a correction. Extremes on the chart create a “horizontal pennant” pattern.
Forecast:
At the beginning of the week, a sideways flat along the resistance zone is likely. An increase in activity and a change in direction can be expected closer to the weekend. There is a high probability that the reversal will coincide with the release of new data.
Potential Reversal Zones
Resistance:
1935.0/1950.0
Support:
1875.0/1860.0
Recommendations
Buying: This has limited potential and may result in a loss of the deposit.
Selling: May be used in trading after confirmation of reversal signals in the resistance zone.
Explanations: In simplified wave analysis (SWA), all waves consist of 3 parts (A-B-C). The analysis focuses on the last unfinished wave in each time frame. Dashed lines indicate expected movements.
Attention: The wave algorithm does not consider the duration of instrument movements over time!
The material has been provided by InstaForex Company – www.instaforex.com
EUR/USD
Brief analysis:
A downward trend since the end of July has been pushing down the chart of the main European currency pair. The price continues its movement along a strong support zone that began a week ago. The wave level of countermovements is insufficient to initiate a reversal. Without the formation of a correction, the continuation of the bearish trend is unlikely.
Weekly Forecast:
In the next couple of days, we can expect a continuation of the sideways movement of the euro along the support zone. Further, the formation of conditions for a reversal and the beginning of a price increase are likely. The price may rise to the calculated resistance levels. A breakthrough during the weekly period is unlikely.
Potential Reversal Zones:
Resistance:
Support:
Recommendations:
Buy: Can be used in trading during individual sessions with reduced volume after confirming signals appear.
Sell: This is risky and may lead to losses in the coming days.
USD/JPY
Brief analysis:
Since mid-July, the Japanese yen chart has developed an upward impulse. The first two parts (A and B) have been fully formed. Starting on September 11, the final part (C) has begun. In the last two weeks before the start of an active rise, quotes will form an intermediate correction in the form of an elongated flat.
Weekly Forecast:
In the next few days, the most likely scenario will be sideways movement along the calculated support levels. After the weekend, we can expect an increase in volatility, a reversal, and the beginning of an active rise in the exchange rate. The release of important news blocks may serve as a temporary reference point.
Potential Reversal Zones:
Resistance:
Support:
Recommendations:
Sell: Due to their low potential, they are highly risky and may lead to losses.
Buy: This may become the main trading direction after the appearance of reversal signals in the support zone, according to your trading system.
GBP/JPY
Brief analysis:
During the past week, a descending wave that started in mid-August ended for the pound/yen cross pair. This segment fully corrected the previous upward trend section on a larger scale. The ascending section starting from September 21 has reversal potential. After its confirmation, it will begin a new short-term upward trend.
Weekly Forecast:
In the coming days, predominantly sideways price movement is expected along the support zone levels. By the end of the week, the flat period is expected to end, with a reversal and the start of an active rise in the exchange rate. Increased volatility may coincide with the release of important news blocks.
Potential Reversal Zones:
Resistance:
Support:
Recommendations:
Sell: Have low potential and may lead to losses.
Buy: Will become relevant after the appearance of confirmed signals for opening deals in the support zone.
USD/CAD
Brief analysis:
The current wave structure on the Canadian dollar chart is upward and has been counting since mid-July. In the last one and a half months, a corrective part (B) in the form of an elongated flat is forming. The structure of this wave is completed. The potential of the bullish price segment that started on September 19 exceeds the retracement level.
Weekly Forecast:
In the next few days, there is a high probability of flat movement with a downward vector. The price movement downwards is expected no further than the lower support boundary. In the second half of the week, we can expect a reversal and a resumption of the upward exchange rate. The calculated resistance represents the most likely completion point for the entire wave.
Potential Reversal Zones
Resistance:
Support:
Recommendations
Selling: Fractional lots may be used in separate sessions. The potential is limited by support.
Buying: Will become relevant after the appearance of confirmed signals in the support zone, confirmed by your trading system (TS).
NZD/USD
The major pair of the New Zealand dollar has been moving downward for the past three months. Since September 5, quotes have mostly moved sideways along strong support, forming a correctional part (B).
Weekly Forecast:
In the next few days, the bullish course of movement will likely continue, with an increase in price towards the resistance zone boundaries. Subsequently, a sideways flat, a reversal, and a resumption of the price decline for the pair can be expected.
Potential Reversal Zones
Resistance:
Support:
Recommendations
Buying: Fractional lots may be possible in separate sessions.
Selling: After confirmed reversal signals appear in the resistance zone, they may become the main direction in trading for this pair.
EUR/GBP
Brief Analysis:
Since September of last year, the formation of a horizontal descending flat has continued. The middle part (B) is approaching completion in the wave structure. Quotes are confined within a narrow price corridor between the 88th and 86th figures.
Weekly Forecast:
The overall upward trend can be continued in the first few days of the upcoming week. Closer to the weekend, there is a high probability of a change in direction and a resumption of the downward price movement.
Potential Reversal Zones
Resistance:
Support:
Recommendations
Buying: Have limited potential and may result in losses.
Selling: Signals from your trading systems will become relevant after the formation of reversal signals in the resistance zone.
Gold
Analysis:
Since March of this year, gold prices have predominantly drifted sideways. On the daily scale of the chart, this segment forms a correction. Extremes on the chart create a “horizontal pennant” pattern.
Forecast:
At the beginning of the week, a sideways flat along the resistance zone is likely. An increase in activity and a change in direction can be expected closer to the weekend. There is a high probability that the reversal will coincide with the release of new data.
Potential Reversal Zones
Resistance:
Support:
Recommendations
Buying: This has limited potential and may result in a loss of the deposit.
Selling: May be used in trading after confirmation of reversal signals in the resistance zone.
Explanations: In simplified wave analysis (SWA), all waves consist of 3 parts (A-B-C). The analysis focuses on the last unfinished wave in each time frame. Dashed lines indicate expected movements.
Attention: The wave algorithm does not consider the duration of instrument movements over time!
The material has been provided by InstaForex Company – www.instaforex.com
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