Wave analysis of EURUSD, GBPUSD, USDJPY on December 05.
The market continues to form a downward corrective wave [B], within which a bearish wave (C) of [B] is being built. It is unlikely that today we will see any big shifts or moves in quotations, as at the moment, the market finds itself in a corrective phase. It is not ruled out that the price movement will accelerate for some time during the publication of data on the composite ISM index for the non-manufacturing sphere for November at 15:00 GMT, so, this is the most significant piece of news for today. It is possible that immediately after the publication of this news release, we will see a downward spurt of the currency pair’s prices in the final part of the wave (C) of [B].
The currency pair continues to build a downward correction wave 2, which may well take the form of a descending zigzag. It is very likely that today, the downward price movement will continue within the bearish impulse [c] of 2. In support of this hypothesis, we can cite the fact that oil prices are falling, and against a background of a strong correlation between the two instruments, the probability of a decrease on GBPUSD is also increasing. In addition, today at 09:30 GMT, the UK’s PMI index for November will be published for the service sector, which could lead to an acceleration in the fall of the currency pair’s prices at the time of publication of the news.
Most likely, the development of an upward impulse wave [a] was totally completed, and in the last section we see the beginning of the construction of a new downward corrective wave [b]. Within this wave, we can see a lateral or downward movement. It should be noted that in the debt market, the yield of 10-year US government bonds declines relative to its counterparts from Japan, which could lead to a local currency pair decline. Thus, the likelihood of a lateral or top-down scenario is high.
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