Weekly forecast based on simplified wave analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, and Gold on October 9th
October 9, 2023 12:23 pm
EUR/USD
Analysis:
On the chart of the European currency, the downward trend continues to dominate. The price has reached the boundaries of a powerful potential reversal zone on a large scale. Since the end of September, quotes have been forming a corrective zigzag that does not exceed the corrective level. The structure of this wave is not complete.
Forecast:
During the coming week, one can expect the continuation of the overall sideways movement in the euro. In the first days, there is likely to be pressure on the support zone. Closer to the weekend, the probability of a change in direction and a resumption of price growth increases. The resistance zone demonstrates the most likely boundary for the upcoming weekly move.
Potential reversal zones:
Resistance:
1.0700/1.0750
Support:
1.0500/1.0450
Recommendations:
Sales: Due to their limited potential, they may lead to losses.
Purchases: Will be possible after the appearance of corresponding signals from your trading system in the area of calculated support.
USD/JPY
Analysis:
On the chart of the Japanese yen, the upward trend continues to dominate. An unfinished section of the report has been going on since September 11th. The price has approached the lower boundary of a powerful potential reversal zone. The wave structure does not appear to be complete. Since last week, the middle part (B) of the formation has started.
Forecast:
In the coming days, the continuation of the overall upward movement is expected, up to the calculated resistance zone. Then, a transition of the price movement into a sideways range is expected, followed by a reversal and the start of a decline in the pair’s exchange rate.
Potential reversal zones:
Resistance:
150.00/150.50
Support:
147.00/146.50
Recommendations:
Purchases: Will be possible with a fractional lot during individual trading sessions. The potential is limited by the resistance zone.
Sales: Not recommended until confirmed signals from your trading systems appear in the resistance zone.
GBP/JPY
Analysis:
Over the past three years, the chart of the GBP/JPY pair has demonstrated an upward trend. An unfinished section of the main course started on July 28th. Over the past two months, the price on the chart has formed the middle part of a wave zigzag. Its structure, by the present time, appears to be complete. The upward section starting on October 3rd has reversal potential.
Forecast:
At the beginning of the upcoming week, a price increase is expected in the area of the calculated resistance zone. Then, one can expect a transition into a sideways flat and subsequent decline down to the support zone. This zone corresponds to a significant timeframe.
Potential Reversal Zones
Resistance:
184.00/184.50
Support:
180.80/180.30
Recommendations:
Purchases: It may be possible to purchase a fractional lot at the beginning of the next week.
Sales: Not recommended until corresponding signals confirmed by your trading system appear in the resistance zone.
USD/CAD
Analysis:
Since mid-July, the Canadian dollar quotes in the USD/CAD pair have been forming an ascending wave. The price has reached the lower boundary of a powerful potential reversal zone on a large scale. The structure of the last section of the current wave from September 19th does not appear to be complete. The recent downward movement lacks reversal potential.
Forecast:
At the beginning of the upcoming week, a sideways movement is expected, with a decline in the exchange rate to the calculated support zone. Further, an increase in volatility and a resumption of the bullish sentiment in the movement can be expected. Increased activity is most likely during the release of important economic news.
Potential Reversal Zones
Resistance:
1.3750/1.3800
Support:
1.3580/1.3530
Recommendations:
Sales: Will become relevant after corresponding signals from your trading systems appear in the support zone.
Purchases: May be used with a fractional lot within the intraday framework.
GOLD
Analysis:
On a weekly chart scale, the formation of a descending wave in gold has been ongoing since March of this year. On a larger chart scale, this section corrects the main trend direction. The unfinished section starts counting on October 4th. Conditions for an intermediate correction have been forming in it since the beginning of the last week.
Forecast:
In the upcoming weekly period, the continuation of the overall sideways movement is expected. At the beginning of the week, there is likely to be another decline in the support zone. Further, a change in direction and a gradual rise towards the resistance zone can be expected.
Potential Reversal Zones
Resistance:
1865.0/1880.0
Support:
1810.0/1795.0
Recommendations:
Sales: Due to their limited potential, they may be risky. It is not recommended until the upcoming retracement is completed.
Purchases: This may become possible with a fractional lot after corresponding signals from your trading systems appear in the support zone.
Explanation: In simplified wave analysis (SWA), all waves consist of 3 parts (A, B, and C). On each timeframe (TF), the last, unfinished wave is analyzed. 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
Analysis:
On the chart of the European currency, the downward trend continues to dominate. The price has reached the boundaries of a powerful potential reversal zone on a large scale. Since the end of September, quotes have been forming a corrective zigzag that does not exceed the corrective level. The structure of this wave is not complete.
Forecast:
During the coming week, one can expect the continuation of the overall sideways movement in the euro. In the first days, there is likely to be pressure on the support zone. Closer to the weekend, the probability of a change in direction and a resumption of price growth increases. The resistance zone demonstrates the most likely boundary for the upcoming weekly move.
Potential reversal zones:
Resistance:
Support:
Recommendations:
Sales: Due to their limited potential, they may lead to losses.
Purchases: Will be possible after the appearance of corresponding signals from your trading system in the area of calculated support.
USD/JPY
Analysis:
On the chart of the Japanese yen, the upward trend continues to dominate. An unfinished section of the report has been going on since September 11th. The price has approached the lower boundary of a powerful potential reversal zone. The wave structure does not appear to be complete. Since last week, the middle part (B) of the formation has started.
Forecast:
In the coming days, the continuation of the overall upward movement is expected, up to the calculated resistance zone. Then, a transition of the price movement into a sideways range is expected, followed by a reversal and the start of a decline in the pair’s exchange rate.
Potential reversal zones:
Resistance:
Support:
Recommendations:
Purchases: Will be possible with a fractional lot during individual trading sessions. The potential is limited by the resistance zone.
Sales: Not recommended until confirmed signals from your trading systems appear in the resistance zone.
GBP/JPY
Analysis:
Over the past three years, the chart of the GBP/JPY pair has demonstrated an upward trend. An unfinished section of the main course started on July 28th. Over the past two months, the price on the chart has formed the middle part of a wave zigzag. Its structure, by the present time, appears to be complete. The upward section starting on October 3rd has reversal potential.
Forecast:
At the beginning of the upcoming week, a price increase is expected in the area of the calculated resistance zone. Then, one can expect a transition into a sideways flat and subsequent decline down to the support zone. This zone corresponds to a significant timeframe.
Potential Reversal Zones
Resistance:
Support:
Recommendations:
Purchases: It may be possible to purchase a fractional lot at the beginning of the next week.
Sales: Not recommended until corresponding signals confirmed by your trading system appear in the resistance zone.
USD/CAD
Analysis:
Since mid-July, the Canadian dollar quotes in the USD/CAD pair have been forming an ascending wave. The price has reached the lower boundary of a powerful potential reversal zone on a large scale. The structure of the last section of the current wave from September 19th does not appear to be complete. The recent downward movement lacks reversal potential.
Forecast:
At the beginning of the upcoming week, a sideways movement is expected, with a decline in the exchange rate to the calculated support zone. Further, an increase in volatility and a resumption of the bullish sentiment in the movement can be expected. Increased activity is most likely during the release of important economic news.
Potential Reversal Zones
Resistance:
Support:
Recommendations:
Sales: Will become relevant after corresponding signals from your trading systems appear in the support zone.
Purchases: May be used with a fractional lot within the intraday framework.
GOLD
Analysis:
On a weekly chart scale, the formation of a descending wave in gold has been ongoing since March of this year. On a larger chart scale, this section corrects the main trend direction. The unfinished section starts counting on October 4th. Conditions for an intermediate correction have been forming in it since the beginning of the last week.
Forecast:
In the upcoming weekly period, the continuation of the overall sideways movement is expected. At the beginning of the week, there is likely to be another decline in the support zone. Further, a change in direction and a gradual rise towards the resistance zone can be expected.
Potential Reversal Zones
Resistance:
Support:
Recommendations:
Sales: Due to their limited potential, they may be risky. It is not recommended until the upcoming retracement is completed.
Purchases: This may become possible with a fractional lot after corresponding signals from your trading systems appear in the support zone.
Explanation: In simplified wave analysis (SWA), all waves consist of 3 parts (A, B, and C). On each timeframe (TF), the last, unfinished wave is analyzed. 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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