Wave analysis of EURUSD, GBPUSD, USDJPY on March 20.
It is assumed that the market forms a rather complex correction wave [X], taking the form of an oblique triangle. Thus, within the current scenario, we can see a small upward movement, after which the currency pair can begin to move within the framework of a descending zigzag wave [Z]. It should be noted that today, at the height of the European trading session, a release on the index of business activity in Germany from the ZEW institute will be published, against the background of this news, the currency pair may move slightly in the upward direction, possible the output of positive data. However, there is no need to expect strong movements today. investors will not hurry with the opening of major positions due to the upcoming FOMC meeting.
Precisely in accordance with previous reviews, we saw the completion of the development of the correctional wave (B), after which the market rose sharply within the upward momentum (C). Most likely, now the wave 4 of this impulse is being constructed. In this regard, in the near future, it is possible to raise the currency pair within the next bullish wave 5, which can update the previous local maximum. The main event of the day today will be the publication of the inflation report in the UK for February. Leading indicators indicate the release of positive data, which will contribute to the upward movement of the currency pair. The situation in the credit markets also speaks in favour of the bull scenario. Therefore, today the price growth is possible.
Most likely, we see the beginning of the development of the next upward combination of zigzags Z, within which the currency pair will move in the coming trading days. Since the market is at the beginning of the bullish wave, then throughout the current week, the growth of the currency pair is possible. The growth of quotations of oil also contributes to the rise of USDJPY. Thus, opening positions against bulls in such a market can be very risky.
Do you want to practice and test the analyst's assumptions? Open a demo account in ARUM Capital!
If you are confident in your abilities and consider the risks, you can open a real account for trading.
|Open a demo account||Open a real account|
Care. The provided market analysis materials are a professional opinion of an associate of ARUM CAPITAL. These materials are provided for infomation purposes only. In no way can the provided analysis be considered as an action signal, neither is it any sort of investment advice (for the purposes of EU Directive 2004/39/EC). ARUM CAPITAL waives any liability for the trading results which may arise after using these reviews. These materials contain NO warranties or guarantees, either direct or implicit, on the precise, complete or confirmed character of the details they contain.