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18.02.202209:41 Forex Analysis & Reviews: EUR/USD, USD/JPY, GBP/JPY, GOLD simplified wave analysis and outlook for February 18, 2022

EUR/USD

Analysis:

On the euro/dollar chart, the short-term trend is about to reverse. In the last two weeks, the middle of the main wave (B) has been forming within the ascending wave initiated on January 28. The correction structure does not indicate the end of the formation.

Forecast:

In the first half of the day, the pair is likely to keep trading sideways along the estimated support level. In the evening, we expect to see higher volatility and resumed growth. It is worth paying attention to news releases scheduled for this time.

Potential reversal zones

Resistance:

- 1.1420/1.1450

Support:

- 1.1350/1.1320

Recommendations:

Trading in the euro market is risky today. It is possible to open long positions in the short term near the estimated support area. You should keep in mind that opposite pullbacks are highly likely today.

Exchange Rates 18.02.2022 analysis

USD/JPY

Analysis:

The Japanese yen has been following the trajectory of the ascending wave from November 2021 that has not been completed yet. As part of the recent wave section built on November 10, the price has been declining, thus forming a correction.

Forecast:

In the next 24 hours, the price is likely to complete the downtrend, form a reversal, and resume the upward movement. The estimated resistance level serves as an upper target for the pair today.

Potential reversal zones

Resistance:

- 115.50/115.80

Support:

- 114.80/114.50

Recommendations:

Selling the pair is not advisable today. It is recommended to refrain from trading until clear buy signals appear in the estimated support zone.

Exchange Rates 18.02.2022 analysis

GBP/JPY

Analysis:

The ascending wave on the pound/yen chart, which dates back to November last year, defines the short-term trend of the cross pair. Since February 10, a downward wave zigzag has been forming and the process is still going on at the moment of writing. The main trend will continue to develop as soon as this wave structure is completed.

Forecast:

In the first half of the day, the pair is expected to move upwards. Later in the day, the price may slow down the pace of growth and pull back to the downside.

Potential reversal zones:

Resistance:

- 157.30/157.60

Support:

- 156.40/156.10

Recommendations:

Trading GBP/JPY may be profitable today only if done within short trading sessions with a reduced volume or fractional lot. You can sell the pair after getting confirmed signals near the resistance zone.

Exchange Rates 18.02.2022 analysis

GOLD

Analysis:

In the course of the wave development, gold reached a strong reversal zone on a higher time frame. The structure of the ascending wave is not yet complete. To continue growth, the wave needs to rise after going through a correction.

Forecast:

In the next 24 hours, gold is expected to complete the uptrend and enter a sideways channel. The decline may start today in the evening or tomorrow.

Potential reversal zones:

Resistance:

- 1900.0/1905.0

Support:

- 1875.0/1870.0

Recommendations:

Trading gold may be risky today and may result in losses. There are no more conditions for going long. Selling the asset will become possible when a reversal near the estimated resistance level is confirmed.

Exchange Rates 18.02.2022 analysis

Explanation: In simplified wave analysis (SWA), waves consist of 3 parts (A-B-C). We analyze the last unfinished wave. The solid arrow background shows the structure that has already been formed. The dashed lines show the expected movements.

Note: The wave algorithm does not take into account the duration of the instrument's movements over 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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