Wave analysis of EURUSD, GBPUSD, USDJPY on May 18.
Most likely, the development of the downward momentum (5) was completed, after which we saw the beginning of the construction of a new upward wave with small bullish impulse and a correction were built to that wave. At the moment, the market is moving in a larger upward impulse, which may become the beginning of the trend. It should be noted that important macroeconomic statistics are not expected today. On the commodity market, there is an upward trend in energy and industrial metals, this could put pressure on the dollar and contribute to the upward trend for EURUSD.
The assumption is confirmed that the formation of the downward impulse 5 of [A] was completed. Most likely, we see beginning of a new ascending correction wave [B]. Thus, on the new trading week, we can expect an uptrend. In favour of the upturn is the positive dynamics of the credit markets, where the yield of 10-year UK government bonds is growing relative to its counterparts from the US and Germany, which will support the pound. Also, oil storms new heights, and due to a strong correlation of these two instruments, growth can also be observed in GBPUSD.
As expected, we saw an upward impulse wave [c] of 5 of (5), which at the moment looks completely complete. Most likely, in the last sector, we see the initial part of a new downward trend. Thus, in the near future the probability of formation of a downward pulse is great. Due to the fact that important macroeconomic statistics are not expected today, the market will have gradual and smooth price movements.
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