Wave analysis of EURUSD, GBPUSD, AUDUSD on February 21.
Over the last trading day, the development of the descending correction wave 4, which took the form of a zigzag, continued. It is likely that the current wave is fully completed. In this regard, today and in the coming trading days, the market is likely to grow in the context of an upward impulse wave 5. However, one should keep in mind that today the bulls are constrained by the fact that in the credit markets the yield of 10-year German government bonds decreases relative to their counterparts from the US and the UK, so we can not see a powerful price increase in momentum 5 in the near future. Nevertheless, the main scenario for the near future is the upside, because The downward correction looks totally complete.
The development of the correctional wave [iv] was completed, and immediately after that the market formed a small upward momentum. It is very likely that this impulse is the beginning of a bullish wave [v]. Thus, in the near future, it is possible to raise the currency pair in the wave [v] of 5. It should be noted that today in the UK will be published a number of important financial news. At 13:30 GMT Time, data on the number of applications for unemployment benefits will be published, and at 18:15 the Governor of the Bank of England Mark Carney will make a speech. In this regard, we can see quite a rapid movement of the currency pair during the publication of news.
The development of the downward corrective wave (ii) is coming to an end, after which we can see the formation of a new upward impulse trend (iii). It should be noted that the wave (ii) has turned out to be quite large in its magnitude, so the price growth may begin as soon as possible. When constructing the first ascending pulses, it is possible to open long positions, because this will signal that the uptrend has begun.
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