Wave analysis of EURUSD, GBPUSD, AUDUSD on January 25.
After the construction of the convergent horizontal triangle is completed, the market continues to move in the upward direction within the bullish momentum 5. Most of this momentum is likely already built, so that soon the climb will be completed, possibly today by evening. Also, it should be noted that the German IFO index can please traders with positive data amid the growth of the PMI Market composite index, they have a strong correlation among themselves, this fact speaks in favour of the rise of the price in the next day.
The market continues to fly in an upward direction, forming a rapid and powerful upward impulse 3. Due to the fact that in the fifth wave in the third wave there is still not enough lateral correction, which will be the fourth part of the impulse [v] of 3, the growth will continue. Those, we will see the rise, then the formation of a lateral correction, then the growth can resume again and further, when the entire wave 3 is fully completed, we will leave in the formation of a long lateral correction 4. Besides, the labour market release published on the eve signals that the Bank England in the spring can raise the discount rate by 0.25%. Thus, in the coming trading days, the recovery of the currency pair will continue, with a high probability.
The market continues to fly in an upward direction within the bull wave 5 of (v). The development of this wave began immediately after the completion of correction 4, marked in red. It is very likely that the formation of wave 5 is not yet complete, so the growth today can still continue. Thus, the situation is favorable for buyers.
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