Wave analysis of EURUSD, GBPUSD, USDJPY on December 04.
As expected, after the completion of the construction of the blue ascending wave (B), a decline began within the new downward wave (C). In the credit market, a negative background for the euro is formed: the yield of 10-year government bonds is falling relative to its counterparts in the United States and Great Britain. The spread of Germany / US securities is at its lowest level in the last few months, which is also negative for the euro. In connection with all the above factors, today it is possible to reduce the currency pair.
After the formation of the upward impulse wave 1 was completed, the construction of a new downward correction 2 began. Most likely, during all subsequent trading days, we will see the continuation of correction 2. The market will move sideways or in a downward direction. Today we should pay attention to the publication at 09:30 GMT time of data on the PMI index for the construction sector. Given that positive data are expected, we can see a brief upward jump in the currency pair, and then, against the backdrop of the negative dynamics of the debt market, the price will again go down, or return to its former place. Thus, the main option for today is a lateral movement or a slight decrease.
At the moment, an upward impulse wave (v) of [a] is being constructed, which does not look complete yet. In this regard, the potential for growth of the currency pair remains. In support of this assumption is the fact that the debt market is experiencing a positive trend: the yield of 10-year government bonds of the US and Japan is growing, which is positive for the pair. Thus, today the growth of quotations is possible.
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