Wave analysis of EURUSD, GBPUSD, USDJPY on May 21.
On the first trading day of the week, the market began to move quite rapidly in a downward direction. It is possible that waves 1 and 2 of the downward pulse were fully constructed, and now bearish impulse wave 3 is developing. If the assumption is true, then in the nearest trading week we will see a downtrend. It should be taken into account that today important macroeconomic statistics are not expected, therefore smooth movements in the market without sudden jumps are possible.
After completion of the formation of the downward pulse [i], we saw a small upward correction, which, as now becomes clear, takes the form of a wave [ii]. Thus, the probability is high that now we see a decrease in the composition of the bearish wave [iii]. If the assumption is true, then we will see a price reduction throughout the upcoming trading week.
Apparently, the assumption that the market is forming the final diagonal was not true. However, the idea of a finite diagonal helped to draw correct conclusions about the price movement in the short term. Today, the layout has been revised in favour of an option more relevant to the current situation. It is very likely that now the wave [v] of 3 is being constructed, after the complete completion of which, we will see the development of correction 4. An approximate scheme of the possible future movement is shown on the graph.
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