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19.05.2025 11:40 AM
Weekly Forecast Using Simplified Wave Analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold on May 19th

EUR/USD

Analysis: Since February, the EUR/USD chart has been forming an upward wave. Over the past month and a half, a corrective segment (B) has been developing within this wave, which remains incomplete. A week ago, the price broke through a strong support level, which now acts as resistance. Several indicators suggest the correction wave is in its final stage.

Forecast: This week, the euro is expected to trade within a narrow range between the nearest opposing zones. In the first days of the week, some upward movement toward resistance is likely, possibly even a brief breakout above it. Afterward, a reversal and a return to a downward trajectory are expected.

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Reversal Zones:

  • Resistance: 1.1200 / 1.1250
  • Support: 1.0980 / 1.0930

Recommendations:

  • Buying: No conditions for long positions.
  • Selling: Could become the main strategy after confirmed reversal signals near resistance. Downside potential is limited by support.

USD/JPY

Analysis: Since December, USD/JPY has been moving within a downward wave. Since late April, a corrective segment has been forming. The downward leg starting from May 12 carries potential for a trend reversal. If confirmed, a shift in short-term trend may follow.

Forecast: A weak upward correction is expected early in the week, potentially reaching the resistance zone. Reversal conditions may form in that area, with renewed downward movement likely closer to the weekend.

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Reversal Zones:

  • Resistance: 147.40 / 147.90
  • Support: 143.50 / 143.00

Recommendations:

  • Buying: Risky and limited in potential.
  • Selling: Can be initiated after reversal signals appear near resistance on your chosen strategy.

GBP/JPY

Analysis: The GBP/JPY cross has been following a sideways-uptrend pattern since last summer. A new segment started in early April and is currently undergoing a corrective wave (B) since early May. The structure resembles a contracting flat.

Forecast: Expect a flat movement early in the week with possible testing of the resistance upper boundary. Bearish momentum is more likely in the second half of the week. Volatility may spike during economic data releases.

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Reversal Zones:

  • Resistance: 193.80 / 194.30
  • Support: 191.00 / 190.50

Recommendations:

  • Buying: High risk, limited potential.
  • Selling: Premature before confirmed reversal signals.

USD/CAD

Analysis: Since February, USD/CAD has been trending downward. Recently, a corrective phase has developed, with prices consolidating in a temporary pullback last week.

Forecast: A continuation of the downward trend is likely early in the week, targeting the support zone. Later in the week, a reversal to the upside is possible, with potential growth toward resistance.

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Reversal Zones:

  • Resistance: 1.4090 / 1.4140
  • Support: 1.3890 / 1.3840

Recommendations:

  • Selling: Viable in small positions during individual sessions.
  • Buying: Appropriate only after confirmed reversal signals appear near support.

NZD/USD

Brief Analysis: NZD/USD has been forming a bullish wave since late April. Last week, a corrective pattern (contracting flat) began developing. The downward segment from May 16 has reversal potential.

Weekly Forecast: A bullish tone is expected early in the week, with resistance marking the potential peak. A trend reversal is more likely in the second half, with price declines toward the support zone.

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Reversal Zones:

  • Resistance: 0.6040 / 0.6090
  • Support: 0.5880 / 0.5830

Recommendations:

  • Buying: Possible in small volumes within certain sessions.
  • Selling: Relevant after confirmed reversal signals near resistance.

Gold

Analysis: Gold has followed a bullish wave trend for years. Since late April, a correction has been unfolding from the upper boundary of a strong resistance zone. A short-term pullback is currently underway. The upper boundary of the daily TF reversal zone lies near support.

Forecast: After pressure near resistance early in the week, a reversal and renewed downward movement is likely. Active selling is most probable later in the week, especially alongside major economic news.

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Reversal Zones:

  • Resistance: 3230.0 / 3250.0
  • Support: 3130.0 / 3110.0

Recommendations:

  • Buying: High risk, limited upside.
  • Selling: May be initiated after confirmed reversal signals near resistance.

Explanations: Simplified Wave Analysis (SWA) assumes all waves consist of three segments (A-B-C). Only the last unfinished wave is analyzed at each timeframe. Dashed lines show expected price movements.

Attention: The wave algorithm does not account for the duration of price movements in time.

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