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Simplified wave analysis and forecast for EUR/USD and GBP/JPY on May 24

EUR/USD

The structure of the bearish wave dominating from March 20 is fully formed. Since yesterday, an upward movement with a high wave level has been developing towards its trend. It can be argued that the previous wave is over. The price of the euro has reached intermediate resistance.

Forecast:

Today, in the first half of the day, the formation of the correctional part of the movement to yesterday's site is expected. The most likely "side", but the downward vector cannot be excluded. A return to the active growth phase is expected by the end of the day. You can focus on the time of the release of news blocks.

Recommendations:

Euro sales are not relevant today. At the end of the current rollback, it is recommended to track reversal signals to find the entry into long positions for this tool.

Resistance zones:

- 1.1220 / 1.1250

Support zones

- 1.1170 / 1.1140

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GBP/JPY

In the bearish wave dominating from March 14, the final section is formed on the bearish wave cross. It formed the first 2 parts (A + B). Since May 21, the final part has started, which has a pronounced pulse form. Within its framework, a hidden correction is being developed on a small scale, in which the latter part is missing.

Forecast:

Today, a flat mood is expected, most likely with an upward vector. The rise above the upper limit of the calculated resistance zone is unlikely. Return to the main trend direction is expected in the second half of the day.

Recommendations:

Purchasing a pair within the framework of an intra-session is possible today, but with increased volatility can be very risky. When the price reaches the calculated resistance zone, it is recommended to start tracking reversal signals to find a point of sale of the cross.

Resistance zones:

- 139.30 / 139.60

Support zones:

- 138.50 / 138.20

- 137.50 / 137.20

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Explanations to the figures: Waves in the simplified wave analysis consist of 3 parts (A – B – C). The last unfinished wave is analyzed. Zones show areas with the highest probability of reversal. The arrows indicate the wave marking according to the method used by the author, the solid background is the formed structure, the dotted ones are the expected movements.

Note: The wave algorithm does not take into account the duration of tool movements over time.

The material has been provided by InstaForex Company - www.instaforex.com