Fractal analysis for major currency pairs as of January 22

By | January 22, 2020
InstaForex
Fractal analysis for major currency pairs as of January 22

Hello, dear colleagues.

For the euro-dollar pair, the price forms a potential for the development of a downward trend on the H1 scale and the level of 1.1064 is the key resistance. For the pound-dollar pair, we follow the upward structure of January 20 and the level of 1.3128 is the key resistance. For the dollar-franc pair, we expect the upward movement to continue after the breakout of 0.9728 and the level of 0.9667 is the key support. For the dollar-yen pair, we expect the continuation of the downward cycle from January 8 after the breakdown of 110.40. For the euro-yen pair, local initial conditions are needed to resume the upward movement, which we expect to reach the level of 122.68. For the pound-yen pair, we expect a move to the level of 144.53 and the level of 143.07 is the key support.

Forecast for January 22:

Analytical review of currency pairs on the H1 scale:

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For the euro-dollar pair, the key levels on the H1 scale are: 1.1131, 1.1115, 1.1102, 1.1079, 1.1064, and 1.1031. We follow the downward structure from January 16. The short-term downward movement is expected in the area of 1.1079-1.1064 and the breakdown of the last value will lead to a pronounced movement. The potential target is 1.1031 and we expect a pullback up from this level.

The short-term upward movement is possible in the range of 1.1102-1.1159 and the breakdown of the last value will lead to a deep correction. The target is 1.1111 and this level is the key support for the downward structure.

The main trend is the downward structure from January 16.

Trading recommendations:

Buy: 1.1102 Take profit: 1.1113

Buy: 1.1116 Take profit: 1.1130

Sell: 1.1078 Take profit: 1.1065

Sell: 1.1063 Take profit: 1.1034

analytics5e2849b44805d.png

For the pound-dollar pair, the key levels on the H1 scale are: 1.3207, 1.3174, 1.3128, 1.3089, 1.3071, and 1.3035. The price canceled the development of the downward structure, and at the moment, we are following the upward structure from January 20. We expect the upward movement to continue after the breakout of 1.3128. In this case, the target is 1.3174. We consider the level of 1.3207 as a potential value for the top; when this level is reached, we expect consolidation, as well as a pullback to the top.

A short-term downward movement is possible in the area of 1.3089-1.3071 and the breakdown of the last value will lead to a deep correction. The target is 1.3035 and this level is the key support for the top.

The main trend is the upward structure from January 20.

Trading recommendations:

Buy: 1.3128 Take profit: 1.3172

Buy: 1.3175 Take profit: 1.3205

Sell: 1.3089 Take profit: 1.3073

Sell: 1.3068 Take profit: 1.3037

analytics5e2849cf1598f.png

For the dollar-franc pair, the key levels on the H1 scale are: 0.9809, 0.9778, 0.9758, 0.9727, 0.9699, 0.9686, and 0.9667. We follow the development of the upward structure from January 16. We expect the upward movement to continue after the breakout of 0.9727. In this case, the target is 0.9758 and in the area of 0.9758-0.9778 is the short-term upward movement, as well as consolidation. We consider the level of 0.9809 to be a potential value for the upward movement; upon reaching this level, we expect a downward rollback.

A short-term downward movement is possible in the area of 0.9699-0.9686 and the breakdown of the last value will lead to a deep correction. The target is 0.9667 and this level is the key support for the top.

The main trend is an upward cycle from January 16.

Trading recommendations:

Buy: 0.9727 Take profit: 0.9756

Buy: 0.9758 Take profit: 0.9776

Sell: 0.9699 Take profit: 0.9687

Sell: 0.9684 Take profit: 0.9668

analytics5e2849ef7de70.png

For the dollar-yen pair, the key levels in the H1 scale are: 111.38, 110.78, 110.39, 109.81, 109.58, and 109.23. We follow the development of the upward cycle from January 8. At the moment, we expect to reach the level of 110.39 and the breakdown of which will allow us to count on the movement to the level of 110.78. The breakdown of 110.80 should be accompanied by a pronounced upward movement. The potential target is 111.38.

A short-term downward movement is possible in the range of 109.81-109.58 and the breakdown of the last value will lead to an in-depth correction. The target is 109.23 and this level is the key support for the top.

The main trend is the upward cycle of January 8.

Trading recommendations:

Buy: 110.40 Take profit: 110.76

Buy: 110.80 Take profit: 111.35

Sell: 109.80 Take profit: 109.58

Sell: 109.55 Take profit: 109.25

analytics5e284a0f9300c.png

For the Canadian dollar-dollar pair, the key levels on the H1 scale are: 1.3157, 1.3126, 1.3112, 1.3090, 1.3062, 1.3040, and 1.3015. We follow the development of the upward cycle from January 7. We expect the upward movement to continue after the breakout of 1.3090. In this case, the target is 1.3112 and in the area of 1.3112-1.3126 is the consolidation. We consider the level 1.3157 to be a potential value for the top; upon reaching this level, we expect a downward rollback.

The short-term downward movement, as well as consolidation, are possible in the area 1.3040-1.3015 and the breakdown of the latter value will lead to the formation of initial conditions for the downward cycle. In this case, the potential target is 1.2988.

The main trend is the upward cycle from January 7, the correction stage.

Trading recommendations:

Buy: 1.3090 Take profit: 1.3112

Buy: 1.3126 Take profit: 1.3155

Sell: 1.3038 Take profit: 1.3017

Sell: 1.3013 Take profit: 1.2990

analytics5e284a2e04e64.png

For the Australian dollar-dollar pair, the key levels on the H1 scale are: 0.6885, 0.6867, 0.6853, 0.6820, 0.6803, 0.6781, and 0.6763. We follow the development of the downward structure from January 16. We expect a short-term downward movement in the range of 0.6820-0.6803 and the breakdown of the last value should be accompanied by a pronounced downward movement. The target is 0.6781. We consider the level of 0.6763 as a potential value for the bottom, upon reaching which we expect consolidation, as well as a pullback to the top.

The short-term upward movement is expected in the area of 0.6853-0.6867 and the breakdown of the last value will lead to a deep correction. The target is 0.6885 and this level is the key support for the downward structure.

The main trend is the downward structure from January 16.

Trading recommendations:

Buy: 0.6853 Take profit: 0.6865

Buy: 0.6868 Take profit: 0.6883

Sell: 0.6820 Take profit: 0.6804

Sell: 0.6802 Take profit: 0.6784

analytics5e284a59ab11c.png

For the euro-yen pair, the key levels on the H1 scale are: 123.89, 123.32, 123.06, 122.68, 122.36, 121.80, 121.47, and 121.06. For the subsequent development of the upward trend, it is necessary to create local initial conditions. The resumption of the upward movement is expected after breakdown 122.36. In this case, the first target is 122.68. The breakdown of which, in turn, should be accompanied by a pronounced movement to the level of 123.06 and in the area of 123.06-123.32 is the short-term upward movement, as well as consolidation. A breakdown of the level of 123.35 will lead to a movement to a potential target – 123.89, from this level, we expect a rollback down.

A short-term downward movement is possible in the area of 121.80-121.47 and the breakdown of the last value will lead to the development of a downward structure from January 16. In this case, the goal is 121.06.

The main trend is the downward structure from January 16.

Trading recommendations:

Buy: 122.36 Take profit: 122.66

Buy: 122.70 Take profit: 123.06

Sell: 121.80 Take profit: 121.50

Sell: 121.45 Take profit: 121.10

analytics5e284a8148a2d.png

For the pound-yen pair, the key levels on the H1 scale are: 146.41, 145.55, 144.93, 144.53, 143.98, 143.07, 142.59, and 142.11. It is expected to reach the level of 144.53. A short-term upward movement in the area of 144.53-144.93 is also expected and the breakdown of the last value will lead to a move to the level of 145.55, near which we expect consolidation. The potential value for the top is the level of 146.41, from which we expect a pullback to the bottom.

A short-term downward movement is possible in the area of 143.07-142.59 and the breakdown of the last value will lead to the formation of initial conditions for the downward cycle. In this case, the potential goal is 142.11.

The main trend is the upward structure from January 3, the correction stage.

Trading recommendations:

Buy: 144.53 Take profit: 144.91

Buy: 144.95 Take profit: 145.55

Sell: 143.05 Take profit: 142.65

Sell: 142.54 Take profit: 142.11

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