Wave analysis of EURUSD, GBPUSD, AUDUSD on February 22.
The market continued to decline, in connection with this, the previous scenario lost its relevance. Judging by the internal structure of the waves, now we see the development of the wave plane (4), within which a downward impulse C of (4) is formed. Thus, today it is possible to decrease. In favour of this scenario is the fact that today the data on the IFO index in Germany will be published, which usually correlates closely with the composite index PMI Market, which in February fell to the lowest level in the last 4 months, so negative data may be expected, which will contribute downward movement of the EURUSD currency pair.
Due to the complex shape of the correction wave 4, the marks were changed. It is likely that wave 4 takes the form of a descending triple zigzag, within which the final part of it - the wave [z] of 4 is being formed at the moment. If the assumption is true, today we will see a price decrease in this wave. In favour of the top-down scenario, the situation on the commodity market, where sales is observed, will support the dollar, as raw materials are quoted in US currency. In addition, in the credit markets, the yield of 10-year government bonds in the UK declines relative to its counterparts in the United States and Britain, which contributes to the bearish scenario. Thus, today it is possible to open short positions.
The market continues to move within the downward corrective wave B, which, judging by its form, is a double zigzag. Now we see the construction of the second impulse of the descending zigzag [y]. Thus, today the market is expected to decline within the momentum framework (c).
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