Wave analysis of EURUSD, GBPUSD, USDJPY on May 03.
Over the past few trading days, the market has formed an impulse wave (5), which at the moment looks completely finished. In this connection, one can make the assumption that the entire downward wave was formed, and in the near future we will see the beginning of a new upward movement, possibly in bullish pulse V. However, it is possible to open long positions only after confirming the proper price structure. Those, when the first tangible bullish impulse wave will be built and correction to it. From the news, you should pay attention to the publication at 17:30 Moscow time of the composite ISM index for the non-manufacturing sphere for April.
The market has formed a rather powerful downward impulse [A], which looks completely finalyzed. In favour of completeness of this trend testifies the internal structure of the wave 5 of [A], which is fully equipped with waves of the lower wave level. Thus, it is likely that in the near future we will see a rise in the currency pair within the framework of an upward correction [B]. Just pay attention to that in the debt market, there is an increase in the yield of 10-year UK government bonds relative to its counterparts from the US and Germany, which will support the pound. From the news, you should pay attention to the publication at 11:30 Moscow time of the index PMI for the services sector for April.
The currency pair continues to move in an upward direction. Looking at the internal structure of the last section, we can assume that a downward correction [iv] was constructed, which is either completely completed or close to its completion. In this regard, we can expect a price increase in momentum [v] in the coming trading days. In favour of the upsurge is the decline in the VIX S & P500 fear index, which indicates a growing interest of investors in risky assets, which can encourage bulls to build long positions.
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