Wave analysis of EURUSD, GBPUSD, USDJPY on June 19.
After the completion of the correction wave (4), the market began to move downward within the downward momentum (5). Most likely, waves 1 and 2 of (5) were constructed. And, wave 2, now it is clearly visible, consists of three small waves and, apparently, is a zigzag. This fact testifies in favour of its completeness. In this regard, in the near future it is possible to reduce the descending impulse within wave 3. From the news, today we should pay attention to the publication at 15:30 Moscow time of data in the US on the volume of issued construction permits for May. The market can accelerate its movement within a few hours after the release of this news.
After the corrective wave [B] was completed, we saw the downward movement of the market within the momentum (i) and correction (ii). Judging by the internal structure of wave (ii) and its duration of construction, it is now completely completed. Therefore, in the near future, it is possible to reduce prices within a downward momentum (iii). The movement of this currency pair will also be affected by the publication of news in the US, as mentioned above.
Yesterday, we expected a downward movement within the corrective wave (B), and the market really moved down, but more than expected. Based on the current situation, it became clear that not a correctional wave (B) is formed, but the initial part of some larger downward wave. Perhaps we see the beginning of a new bearish trend. Anyway, according to the current setup, the impulse (A) comes to an end. When the wave (A) is completed, we will see a local upward correction (B), after which the wave is completed, it is possible to continue the decline. It is possible that for the previous trading day the market fell due to the publications of the American President on the possible introduction of new trade duties, this caused a negative reaction from the Chinese authorities, and sales began on Asian stock exchanges. In the current situation, it is possible to continue the downward trend.
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