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Simplified wave analysis and forecast for GBP/USD, AUD/USD, USD/CHF, USD/CAD on October 18

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Relevance up to 05:00 2021-10-19 UTC–4

GBP/USD

Analysis:

Over the past year and a half, the trend of the British pound has been aimed at strengthening its position relative to the US dollar. The ascending section that began on September 29 completed the wave’s middle part (B), giving rise to the final part (C). The price reached the intermediate resistance zone.

Forecast:

Today, a general sideways course of price movement between the nearest oncoming zones is expected. A downward vector to the support zone is likely after an attempt to put pressure on the resistance zone.

Potential reversal zones

Resistance:

– 1.3770/1.3800

Support:

– 1.3690/1.3660

Recommendations:

Today, trading in the pound has increased risks and can be unprofitable. It is recommended to refrain from entering the pair’s market until the end of the downward pullback and to look for buy signals at its end.

AUD/USD

Analysis:

On the chart of the major pair of the Australian dollar, the downward wave that began in February continues. Since July 21, quotes have been forming a counter correction of the wrong kind, which has not yet been completed.

Forecast:

The general upward course of the movement is expected to continue today. In the next session, a short-term decline in the area of the support zone is possible. Active growth of the exchange rate can be expected at the end of the day or tomorrow.

Potential reversal zones

Resistance:

– 0.7440/0.7470

Support:

– 0.7380/0.7350

Recommendations:

There are no conditions for sale in the Australian dollar market today. It is recommended to monitor the reversal signals for the purchase of the instrument in the area of settlement support.

USD/CHF

Analysis:

A descending wave in the form of a shifting plane has been forming on the Swiss franc chart since mid-June. The wave structure lacks the final part (C). Quotes in the last two weeks form an intermediate horizontal pullback.

Forecast:

The general flat nature of the price movement is expected in the upcoming sessions. A descending vector is more likely. There are few chances for a breakthrough of settlement zones within the current day.

Potential reversal zones

Resistance:

– 0.9260/0.9290

Support:

– 0.9190/0.91600

Recommendations:

Today, trading transactions on the franc market are possible only within the framework of individual sessions in small lots. Settlement zones limit the potential for price fluctuations.

USD/CAD

Analysis:

A downward stretched plane has been forming on the Canadian dollar major pairs market since July 19. The wave structure has entered the final phase, forming the last part of the wave (C). The price has reached intermediate support.

Forecast:

You can expect the price to move in the side corridor between the oncoming zones in the coming day. In the first half of the day, an upward vector is more likely. A reversal and a return to the bearish rate are expected.

Potential reversal zones

Resistance:

– 1.2430/1.2460

Support:

– 1.2360/1.2330

Recommendations:

Today, trading transactions on the Canadian market are riskier and can lead to losses. It is recommended to refrain from entering the pair’s market until the entire pullback is completed, followed by a sale in the area of the resistance zone.

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!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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