Wave analysis of EURUSD, GBPUSD, USDJPY on June 15.
Over the previous trading day, the development of the ascending correction wave (4) was fully completed, after which the market began to move in the downward direction within the bearish momentum (5). The wave of euro sales began against the backdrop of the ECB's reluctance to complete the QE program in September this year. Mario Draghi said that the central bank will complete the purchase of bonds until December 31, in place of the previous information, which indicated the date on October 1. Today, investors will still be under the impression of yesterday's meeting of the ECB, so you can expect a continued downward momentum (5).
Yesterday, the market sharply completed the development of an upward correction wave [B], and began to move in a downward direction, forming a momentum [C]. Most likely, today the price reduction will continue. In favour of this scenario indicates the situation in the credit markets, where the yield of 10-year government bonds in the UK declines in relation to its counterparts from the United States. Also, today we can be pleased with the statistics on industrial production in the US for May, as the industrial index ISM in the last month showed growth. This fact will also exert pressure on the currency pair. In connection with this, today we expect a decrease.
After the completion of the construction of the descending correction wave (B), we saw the beginning of a new bullish pulse (C). The currency pair is rapidly flying in an upward direction. Most likely, in the coming trading days, the market will continue to grow. Thus, in the current situation, a bullish trend is expected. In favour of this scenario is the fact that on the eve of the index of "fear" VIX fell by 6%, which signals the continuation of the upward trend in the US stock market. This fact will help support the USD, due to the strong correlation between USDJPY and S & P500. Also, today can be published a positive release of industrial production in the states. These factors will contribute to price growth.
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