Wave analysis of EURUSD, GBPUSD, USDJPY on May 24.
It is assumed that during the previous trading day the market has completed the construction of a downward impulse wave 5 of (5), so the entire downward trend can be completed. If the assumption is correct, in the near future we can see the rise of prices in the new uptrend, or a major upward correction. It should also be borne in mind that the rise of the market can be significantly accelerated during the publication of data on the number of primary applications for unemployment benefits in the US at 15:30 Moscow time.
The market has formed the last part of the downward end diagonal [v] of 5. In this regard, the entire downtrend can be fully completed. In favor of the completion of the trend is the fact of the appearance of the final diagonal, this model always appears in the end of trends. That is why, in the near future we can see the rise of the currency pair. Given the fact that a number of important news will be published in the UK today, we can see an increase in volatility. It is possible that the news will gain strength is the bulls, and the market will move up.
Yesterday's critical level was overcome, so the previous version of the layout lost its relevance. The most suitable scenario at the moment is the option with a finite diagonal, in which the first, third and fifth waves took the form of zigzags. After the end of the finite diagonal, we saw a decrease in the downward momentum (a). At the moment, this momentum looks completely completed, so in the near future it is possible to rise in the correction (b), as indicated on the chart. It should also be borne in mind that the wave (b) can take the form of a lateral correction.
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