Weekly Forecast Based on Simplified Wave Analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, EUR/GBP, and EUR/CHF — December

[Ben Graham]

GBP/USD

Brief Analysis:

The unfinished upward wave model on the chart of the British pound major pair dates back to the beginning of the current year. Since early November, after a correction formed from a strong support zone, prices have begun forming the start of the final part (C). Its structure does not yet appear complete at the time of analysis. Price is located near the upper boundary of a strong potential reversal zone.

Weekly Forecast:

During the coming week, completion of the sideways movement vector of the pound is expected. Pressure on the upper resistance boundary is possible. By the end of the week, a reversal formation and the beginning of a price decline can be expected, within an overall flat market environment. An increase in volatility is likely already next year.

Potential Reversal Zones

Resistance:

• 1.3510 / 1.3560

Support:

• 1.3350 / 1.3300

Recommendations:

• Buying: Limited potential; carry a high level of risk.
• Selling: Will become relevant after confirmed reversal signals appear near the resistance zone on your trading systems (TS).

AUD/USD

Brief Analysis:

On the chart of the Australian dollar major pair, the primary direction since April has been set by an uptrend. The latest unfinished segment began on November 21. From this point, the structure is forming the beginning of the final part (C). Price has reached the lower boundary of a potential reversal zone. No clear signs of an imminent reversal are yet observed on the chart.

Weekly Forecast:

In the first days of the coming week, continuation of the overall upward movement is expected. After contact with the calculated resistance zone, a change in direction and the beginning of a price decline toward the support boundaries can be anticipated.

Potential Reversal Zones

Resistance:

• 0.6730 / 0.6780

Support:

• 0.6640 / 0.6590

Recommendations:

• Buying: Possible with a small position size during individual sessions; risky.
• Selling: After confirmed reversal signals appear near resistance, they may be used in trading.

USD/CHF

Brief Analysis:

Since August, price movement on the Swiss franc chart has been governed by an upward extended flat algorithm. Within the wave structure, represented by a shifted/extended flat, the middle part (B) is nearing completion. Quotes are moving along the upper boundary of a wide potential reversal zone on the daily timeframe.

Weekly Forecast:

At the beginning of the current week, an overall flat movement vector is expected, with price moving along the calculated support. An increase in volatility, a reversal, and a change in direction can be expected toward the end of the week.

Potential Reversal Zones

Resistance:

• 0.8080 / 0.9080

Support:

• 0.7860 / 0.7810

Recommendations:

• Selling: There are no suitable market conditions for such trades.
• Buying: May be used in trading after confirmed reversal signals appear.

EUR/JPY

Brief Analysis:

The current wave structure of the EUR/JPY pair is upward, originating from late February. Over the past two months, a shifted flat has been forming covertly within it, which remains unfinished at the time of analysis. Over the last ten days, price has been within a potential reversal zone on the H1 timeframe.

Weekly Forecast:

In the coming days, continuation of the overall flat movement sentiment with an upward vector is expected. Near the calculated resistance, there is a high probability of a transition into sideways drift, forming conditions for a reversal. The beginning of a price decline is likely already next year.

Potential Reversal Zones

Resistance:

• 185.00 / 185.50

Support:

• 182.10 / 181.60

Recommendations:

• Buying: Risky, with limited potential.
• Selling: After appropriate confirmed signals from your trading systems appear near resistance, they may be used for trading this pair.

EUR/GBP

Brief Analysis:

In the EUR/GBP pair structure, the direction of short-term trends is set by the algorithm of a downward wave originating on April 11. Within the larger wave structure, this segment forms a counter corrective extended flat. The structure of this wave lacks its final part. No signs of an imminent trend change are observed on the chart.

Weekly Forecast:

In the first days of the coming week, completion of the upward movement vector is expected. Near the calculated resistance, conditions for a reversal are likely to form. A change in direction and a resumption of the downward movement can be expected already next year.

Potential Reversal Zones

Resistance:

• 0.8800 / 0.8850

Support:

• 0.8640 / 0.8590

Recommendations:

• Buying: Possible with a reduced position size within intraday trading.
• Selling: May be used after appropriate reversal signals appear near resistance on your trading systems (TS).

EUR/CHF

Brief Analysis:

On the EUR/CHF pair chart, the primary long-term direction in recent years has been defined by a bearish trend. The unfinished wave structure from November 14 is directed upward. Since December 8, the middle part (B) has been forming and remains unfinished. Quotes are located near the upper edge of a potential reversal zone on a higher timeframe.

Weekly Forecast:

In the coming days, growth of the pair and an attempt to pressure the support zone can be expected. A short-term break below its lower boundary cannot be ruled out. After that, formation of a reversal and the beginning of an upward movement can be anticipated, with the target at the calculated resistance.

Potential Reversal Zones

Resistance:

• 0.9400 / 0.9450

Support:

• 0.9270 / 0.9220

Recommendations:

• Selling: Have no potential and may lead to losses.
• Buying: May be used after appropriate confirmed reversal signals appear on your trading systems (TS).

Explanations:

In simplified wave analysis (SWA), all waves consist of three parts (A–B–C). On each timeframe, the latest unfinished wave is analyzed. Expected movements are shown with dashed lines.

Attention:

The wave algorithm does not take into account the duration of price movements over time.

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