Wave analysis of EURUSD, GBPUSD, USDJPY on June 05.
It is assumed that for the previous trading day, an upward impulse wave [C] of 4 was built, after the complete completion of which, the market can begin to move in a downward direction, forming a bearish zigzag 5. Thus, in the near future it is possible to reduce the price. A small drop in oil prices is in favour of this scenario. Also, today we should pay attention to the publication at 17:00 Moscow time in the US composite index ISM for the non-manufacturing sector in may.
After completing the construction of the downward impulse wave [A], we saw, apparently, the initial part of the upward correction wave [B], which will take the form of a combination of zigzags. During the previous trading day waves a and B of (y) were built. It is possible that today we expect a small rise in the wave C of (y). Positive statistics from the UK on the PMI index in the service sector show a positive trend in favour of the recovery. Also, the yield spread of 10-year UK and US government bonds is growing, which is also positive for the pound. However, a correction in the oil market may constrain growth, due to the direct correlation of these two instruments. Therefore, trade decisions today should be made with caution.
It is likely that you have come to the end of the zigzag development of the ascending correctional wave X. This assumption can be made looking at the layout of the rising impulse [C], where the development of the final part of the fifth wave. Thus, in the near future we can see the beginning of the downward movement of the currency pair. However, trading decisions should be made with caution, as the s&P500 index has updated the maximum, which signals that the bulls have potential.
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