Wave analysis of EURUSD, GBPUSD, AUDNZD on December 12.
After the completion of the downward correction wave [B], we have likely seen the beginning of a new bullish wave [C]. At the moment, the market forms a small downward correction (2), which has not yet been completed. Taking into account the fact that the spread of the yields on German and US government bonds in the debt market have remained practically unchanged compared to the previous week's close, today the market could practically stand still, forming the final part of the correction (2). It is unlikely that today, investors will be in a hurry with the opening of new positions, as tomorrow the meeting of the US Federal Reserve is set to take place.
The currency pair continues to form a bearish correction wave (B), which, judging by its form, takes the form of a double three. Most likely, soon the development of the entire wave (B) will be fully completed, and we will see the beginning of a new upward impulse wave (C). It should be noted that today, the report on the consumer price index will be published, which may see an increase since in the UK, energy prices have risen and employment also has increased. Thus, if at 09:30 GMT there are readings on the consumer price index in the region of 3.1% or more, we can expect a powerful upward movement within the wave (C).
Most likely, the downward corrective wave (4) was fully, or almost fully completed, because the zigzag z is almost complete. The conclusion about this can be made by its internal structure, where five waves are clearly distinguished, shown in blue. Thus, it is likely that soon we will see a new upward movement of the currency pair within the bull wave (5). However, it is possible to open long positions only after the appearance of the first tangible upward momentum and a downward correction to it, which will signal the completion of the previous bearish movement and the beginning of a new wave in the northern direction.
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