Wave analysis of EURUSD, GBPUSD, USDJPY on May 14.
Apparently, the market forms an upward correction wave (4), after complete completion, we will still see the final downward impulse (5). It is quite probable that the completion of the upward correction will occur at the level of the correction wave of the junior wave level, i.e. in the wave zone [iv] highlighted in green. Also, today it should be noted that the market is not expected to have important macroeconomic statistics, so we are expected gradual and smooth movements of the currency pair. Reducing quotes on gold and oil could also have a negative effect on the value of the euro.
For quite some time now we see a horizontal GBPUSD flat. Most likely, this price pattern is a wave 4 in the pulse [A], so after its completion, a downward impulse price of 5 of [A] is expected to fall. However, given the fact that today there are no important news, the price will move at a slow pace. The situation in the credit markets, where the yield spreads of the 10-year government bonds of the United Kingdom and the United States are decreasing, will also contribute to the downward trend in prices.
Apparently, the market continues to move within the framework of the lateral correction wave (4). Now we see the development of a final descending zigzag Y, within which the development of the ascending correction wave [b] occurs. After completing the wave [b], the decrease may well continue. Therefore, this fact should be taken into account in its trade.
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