Wave analysis of EURUSD, GBPUSD, USDJPY on June 18.
It is assumed that after the completion of the correction wave (4), the market began to move in a downward direction within the bearish momentum (5). It is very likely that now there is a development of a small upward correction 2, after the completion of which, the decline will continue. It is possible to expect a decrease in the same way and against the background of instability in the commodity market, where last Friday there was a wave of sales. Metals and oil have significantly sagged, which can contribute to pressure on the euro. And in the absence of important macroeconomic statistics, the above factors can become key.
Apparently, we see the formation of the initial part of a downtrend. An impulse (i) was built, and an upward correction to it is now being formed (ii). Most likely, after a small rise in the price within the wave (ii), the currency pair will continue to move in a downward direction. A strong factor in favour of the decline is the situation on the oil market, which has significantly subsided over the last trading day. As we know, Brent and GBPUSD are strongly correlated with each other, so this fact may indicate a strong bearish potential on GBPUSD. However, it should be remembered that the decline may continue only after the upward correction (ii) is fully completed.
It is very likely that the market continues to form a corrective wave (B), which takes the form of a double triple w-x-y. After the complete completion of the wave y of (B), we are likely to see another wave of price growth within the momentum (C). However, before this happens, the market must completely complete the wave (B). Therefore, today, a local corrective price reduction is possible.
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