empty
23.10.2023 10:53 AM
Weekly forecast based on simplified wave analysis: GBP/USD, AUD/USD, USD/CHF, EUR/JPY, EUR/CHF, and US dollar index on October 23rd

GBP/USD

Brief Analysis:

On the British pound chart, a large-scale descending wave has been forming since the beginning of September. Throughout October, a complex corrective pattern in the form of a shifting flat structure has been developing within the wave. At the time of the analysis, it did not show signs of completion. The price is near the lower boundary of a strong potential reversal zone in the weekly time frame.

Weekly Forecast:

At the beginning of the upcoming week, the completion of the price decrease of the British pound is expected, down to the support zone. Following that, a reversal formation and the beginning of a price increase can be anticipated. The resistance zone demonstrates the most probable level of the week's pair trajectory completion.

This image is no longer relevant

Potential Reversal Zones

Resistance:

  • 1.2320/1.2370

Support:

  • 1.2050/1.2000

Recommendations:

Purchases: This will become possible with a fractional lot size after the appearance of corresponding reversal signals in the support area.

Sales: Have limited potential. It is recommended to reduce the lot size and close deals at the first reversal signals.

AUD/USD

Brief Analysis:

A descending trend continues on the main Australian dollar pair's chart. An unfinished segment started on August 11. Within its structure, the current month has seen a counter-correction in the form of an elongated flat. This wave segment is in its final phase.

Weekly Forecast:

At the beginning of the upcoming week, a movement along the upper boundary of the support is expected. Subsequently, a reversal and the resumption of price increases can be expected. Its completion is most likely within the boundaries of the resistance zone.

This image is no longer relevant

Potential Reversal Zones

Resistance:

  • 0.6420/0.6470

Support:

  • 0.6280/0.6230

Recommendations:

Sales: are quite risky and are not recommended in the coming days.

Purchases: will become possible after the appearance of reversal signals in the support area, according to your trading system.

USD/CHF

Brief Analysis:

An unfinished bearish wave on the major Swiss Franc chart has been counting since the beginning of November last year. Since a powerful support level in mid-July, the price has been forming a correctional zigzag. At the time of the analysis, the middle part of the wave construction is unfolding.

Weekly Forecast:

A downward trajectory is likely in the next couple of days. Subsequently, an activation and resumption of the upward trajectory are to be expected. The upper boundary of the expected weekly pair trajectory is represented by the calculated resistance.

This image is no longer relevant

Potential Reversal Zones

Resistance:

  • 0.9030/0.9060

Support:

  • 0.8790/0.8740

Recommendations

Sales: Can be used with a fractional lot size for intraday trading in the coming days.

Purchases: will become relevant after the appearance of corresponding signals in the support zone.

EUR/JPY

Brief Analysis:

Since March of this year, an ascending wave has determined the main direction of the euro against the Japanese yen. An unfinished segment started on September 26. Over the past two weeks, the price has broken through a strong resistance level and has subsequently relied on it as support. Within this zone, the middle part of the short-term wave (B) has been forming.

Weekly Forecast:

In the next few days, there is a probability of a sideways movement along the support levels. Closer to the weekend, an increase in volatility, a reversal, and a return to the main course of movement can be expected.

This image is no longer relevant

Potential Reversal Zones

Resistance:

  • 160.50/161.00

Support:

  • 158.20/157.70

Recommendations

Sales: highly risky and may lead to losses.

Purchases: May be recommended after the appearance of reversal signals in the support area, as confirmed by your trading system.

EUR/CHF

Brief Analysis:

On the euro-to-swiss franc cross chart, a descending trend dominates. An unfinished wave structure in the main direction started in mid-January. Within this, a counter-correction was developed on September 26. The subsequent decline marked the beginning of the final segment (C).

Weekly Forecast:

In the next few days, a flat trend and a short-term retracement towards the resistance zone are likely. Subsequently, a shift to a sideways movement with a reversal formation can be expected. By the end of the week, a resumption of the price decrease can be expected, down to the support levels.

This image is no longer relevant

Potential Reversal Zones

Resistance:

  • 0.9520/0.9570

Support:

  • 0.9380/0.9330

Recommendations

Purchases: have limited potential. Consider reducing your lot size to a minimum and closing deals at the first signs of a reversal.

Sales: will become relevant after the appearance of corresponding signals in the resistance zone, according to your trading systems.

US dollar index

Brief Analysis:

The dollar index continues to recover previously lost positions. Prices rebounded downward from the lower boundary of a strong resistance zone, forming a correctional flat. The current level does not yet indicate reversal potential. The opposing movement remains within the bounds of the correction of the last trending segment.

Weekly Forecast:

At the beginning of the week, a short-term decline in support levels is not ruled out. Subsequently, amidst growing volatility, a resumption of the index's price increase is expected, with quotes rising towards the resistance zone.

This image is no longer relevant

Potential Reversal Zones

Resistance:

  • 106.70/107.20

Support:

  • 105.70/105.20

Recommendations

Purchases: Betting on a stable rise in national currencies in major pairs is premature.

Sales: In the second half of the week, they will become preferable in all major pairs.

Explanation: In simplified wave analysis (SWA), all waves consist of three parts (A, B, and C). On each timeframe (TF), the last unfinished wave is analyzed. Dashed lines indicate expected movements.

Note: The wave algorithm does not consider the duration of movements in time.

Isabel Clark,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Analysis on May 16, 2025

The wave structure for the GBP/USD instrument continues to indicate the formation of a bullish impulsive wave sequence. "Thanks" to Donald Trump, the wave pattern closely mirrors that of EUR/USD

Chin Zhao 18:43 2025-05-16 UTC+2

EUR/USD Analysis on May 16, 2025

The wave structure on the 4-hour chart for the EUR/USD pair has transformed into an upward one and continues to hold this formation. I believe there is little doubt that

Chin Zhao 18:40 2025-05-16 UTC+2

EUR/USD Analysis on May 15, 2025

The wave pattern on the 4-hour chart for EUR/USD has shifted into a bullish formation and remains so. There is little doubt that this transformation has occurred solely

Chin Zhao 19:26 2025-05-15 UTC+2

GBP/USD Analysis on May 15, 2025

The wave markup for GBP/USD has also shifted into a bullish, impulsive structure — "thanks" to Donald Trump. The wave picture is almost identical to that of EUR/USD. Until February

Chin Zhao 19:19 2025-05-15 UTC+2

GBP/USD Analysis on May 14, 2025

The wave structure for GBP/USD has also transformed into a bullish impulsive pattern—"thanks" to Donald Trump. The wave picture is almost identical to that of EUR/USD. Up until February

Chin Zhao 18:01 2025-05-14 UTC+2

EUR/USD Analysis on May 14, 2025

The wave structure on the 4-hour chart for the EUR/USD pair has shifted to a bullish formation and continues to hold that stance. I believe no one doubts that this

Chin Zhao 17:59 2025-05-14 UTC+2

GBP/USD Analysis on May 13, 2025

The wave pattern for GBP/USD has also transformed into a bullish, impulsive structure — "thanks" to Donald Trump. The wave picture is almost identical to that of EUR/USD. Until February

Chin Zhao 18:37 2025-05-13 UTC+2

EUR/USD Analysis on May 13, 2025

The wave structure on the 4-hour chart for EUR/USD has transformed into a bullish pattern and remains such. There is little doubt that this shift was triggered exclusively

Chin Zhao 18:35 2025-05-13 UTC+2

EUR/USD Analysis on May 9, 2025

The wave structure on the 4-hour EUR/USD chart has transformed into a bullish pattern. I believe there's little doubt that this shift was driven solely by the new U.S. trade

Chin Zhao 19:19 2025-05-09 UTC+2

GBP/USD Analysis on May 9, 2025

The wave pattern for the GBP/USD instrument has also shifted into a bullish, impulsive structure—"thanks" to Donald Trump. The wave picture is almost identical to that of EUR/USD. Until February

Chin Zhao 19:16 2025-05-09 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.