Wave analysis of EURUSD, GBPUSD, USDJPY on December 01.
The currency pair continues the formation of the corrective wave [B], within which a blue ascending wave (B) is constructed. In accordance with the current mark, the wave (B) and the beginning of a new downward movement within the wave (C) of [B] will be possible soon. In support of this assumption, we can cite the fact that there is a negative trend in the credit market for the single European currency, and this may help to reduce the currency pair’s prices. Also, today we can expect the release of positive statistics from the US on the ISM index in the industry, which could in turn positively affect the value of the dollar. Thus, today there is a possibility of a decline in the market.
It is very likely that in the last section a small downward corrective wave [iv] is formed, after which we see the final rise in the price in wave [v] of 1 and the update of the last maximum. This can be supported by the publication of data on PMI in the UK industry at 09:30 GMT time, then it is possible for quotations to lower in the downward correction 2 against the negative dynamics of the debt market. The yield differential of 10-year government bonds of the United Kingdom and the United States is falling, which is a negative factor for the pound.
Today, the growth of the currency pair is possible for several reasons. First, we see the construction of the final part of the ascending impulse wave [a], which means that today the market can grow in the wave (v) of [a]. Secondly, Japan today published an inflation report for October, which recorded a slowdown in the growth rate of consumer prices from 0.7% to 0.2%. And in the US, inflation in October, on the contrary, showed growth. Multidirectional dynamics of inflation indicators is on the side of the dollar. Thirdly, the US stock market updates the highs and climbs to new heights, which is positive for the currency pair, because there is a correlation moment.
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