Wave analysis of EURUSD, GBPUSD, USDJPY on April 03.
Over the previous trading day, we saw an update to the previous low. It is possible that in this way the final downward impulse wave 5 of (A) was constructed, and now the market moves within the initial part of the upward correction (B). Thus, today it is possible to correct the currency pair within the specified wave. Published yesterday in the US report on the ISM index for March indicates an increase in inflation, which is a positive factor for the dollar, and may indicate that we are currently in a downward zigzag and after building a small upward correction (B), the market will continue to decline.
It is likely that now the initial part of the rising wave [Z] is being formed, the development of which began after the completion of the corrective wave of the ligament [X]. It should be noted that today at 08:30 GMT Time an important report on the PMI index for the production sector will be published, against which bulls can gain strength and start pushing the price up. It is recommended to consider this in drawing up your trading plan for the day.
After the construction of the upward impulse wave (1) was completed, we saw the formation of a correctional wave (2), which deepened over the previous trading day, forming a descending zigzag. It is possible that the development of the bullish momentum (3) has already begun, and in the near future we will see the growth of the currency pair. Yesterday, most investors were resting, but today the trades will be resumed in the usual volume. The report on the industrial index of ISM pointed to GDP growth, which signals the growth of corporate profits and is positive for the stock market, and this may lead to an increase in USDJPY due to a strong correlation of the stock market and this currency pair.
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