Wave analysis of EURUSD, GBPUSD, USDJPY on May 04.
Most likely, the downtrend [C] of IV is coming to the end. A new upward wave can be formed in the very near future. In spite of this, it is not recommended to open long positions without confirmation. after such a powerful movement, there is always a high probability of continuing a downward trend. From the news, the main event of the day will be the publication of data on the labour market in the US for April. Given that the indices of employment in industry and service sector from ISM showed a decline, one can expect data on Non-Farm within the median of forecasts. Also, it should be noted that today is the last trading day of the week, so you can expect profit taking on short positions, which will contribute to the development of an upswing.
It is assumed that the market has completely completed the development of a downward impulse wave [A]. In the near future, it is possible to raise the currency pair within the framework of a new upward correction movement [B]. In favour of the trend reversal is the fact that the United Kingdom and the United States published mixed macroeconomic statistics on business activity indexes in the services sector, this situation will contribute to the growth of quotations. Also, in favour of the rise says the situation in the black gold market, where investors buy Brent crude oil. In addition, it is likely that soon new sanctions will be introduced in the United States against the Islamic Republic, and this is a positive signal for oil quotations, as for the pound, due to the strong correlation of these two instruments.
Apparently, a fairly large upward trend was completed, and in the last section we saw the beginning of a new downward wave. Most likely, soon the first descending impulse of the price will be completed, and we will see a bullish correction, but this will happen already next week. Today the formation of the final part of the downward impulse is expected. Also, note that the yen has a strong reverse correlation with gold, which has been showing growth recently, so this fact can also help reduce USDJPY.
Care. The provided market analysis materials are a professional opinion of an associate of ARUM CAPITAL. These materials are provided for infomation purposes only. In no way can the provided analysis be considered as an action signal, neither is it any sort of investment advice (for the purposes of EU Directive 2004/39/EC). ARUM CAPITAL waives any liability for the trading results which may arise after using these reviews. These materials contain NO warranties or guarantees, either direct or implicit, on the precise, complete or confirmed character of the details they contain.