Wave analysis of EURUSD, GBPUSD, AUDUSD on February 01.
In accordance with expectations, the development of a small ascending wave was completed, which we designated as b, and at the moment a bear wave is being constructed c. Thus, in accordance with the current wave counting, we can expect a decline. In favour of a downward scenario, the situation in the credit markets is also indicative. In addition, today we can expect a positive release on the ISM index for the US manufacturing sector, which can also support the American currency. All these factors tell us that today we can see the downward movement of the currency pair.
The market continues to build a corrective wave 4, within which the middle part of the wave is nearing completion. Thus, in accordance with the current wave pattern, the full completion of the corrective wave [b] is soon expected, after which we are most likely to see a downward movement in the wave [c] of 4. The situation in the debt market also contributes to the downward movement of the currency pair. In addition, we should not forget that in the second half of the day positive macroeconomic statistics from the United States is expected to emerge. Thus, today there is a possibility of a decline in quotations.
In accordance with the previous forecast, the development of the local upward wave was completed, and after that the market began to fall quite rapidly within the framework of a new downward momentum. Most likely, we see the initial part of the correctional wave B, which can take the form of a zigzag, or other correctional model. Anyway, at the moment the market is dominated by bears.
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