Wave analysis of EURUSD, GBPUSD, USDJPY on April 26.
After the completion of the ascending correction wave 4, we saw a decrease in the downward impulse wave 5. Most likely, at the moment this wave is completely completed. In this regard, in the near future we can see the initial part of the new uptrend. However, long positions can only be opened after the mark is confirmed. Due to the fact that important news will be published today, high volatility is possible on the market. It is likely that Mario Draghi today will raise the forecast for inflation in the euro area for the second half of 2018 due to the growth of oil. This could trigger an upward pullback on the euro.
It is likely that GBPUSD has completed the development of a downward impulse [A], because This wave looks fully equipped with waves of the lower wave level. Most likely, in the near future we will see the growth of the market within the new ascending correction wave [B]. In favour of the upturn is the situation on the debt market, where there is an increase in the yield of 10-year UK government bonds relative to its counterparts from the US and Germany. Second, investors are building up long positions in the black gold market, which is also positive for the pound, due to the strong correlation of these two instruments.
For this currency pair, we see the development of a rapid upward trend. The market is most favourable for trade. Most likely, for the previous trading day, the development of an upward impulse wave [v] of 3 was completed, and now we see the beginning of the construction of a downward correction 4. After the completion of correction 4, an upward trend is expected to continue. In favour of growth, the situation on the debt market, where the yield differential of 10-year government bonds of the US and Japan continues to grow, as well as the situation on the US stock market, which can also grow.
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