Wave analysis of EURUSD, GBPUSD, AUDUSD on February 27.
The currency pair continues to build a corrective wave [iv], which takes the form of a long-term lateral correction. After its full completion, the beginning of formation of a new downward impulse [v] is expected. It is possible that the decline will begin after the speech of Jerome Powell as head of the FOMC (13:30 GMT Time), which can point to a steady GDP growth and a gradual increase in inflation expectations in the economy. This can provoke a downward movement of the currency pair.
As expected in the previous review, we saw the completion of the upward correction wave (b), after which the market began to decline within the framework of a new bearish impulse (c). Most likely, today the currency pair will continue to move in a downward direction. Also, the negative dynamics of the debt market will contribute to the decline. The yield of 10-year government bonds in the UK is declining relative to its counterparts from the US and Germany, this will help to weaken the pound. Thus, today the market is likely to be dominated by bears.
We did not see such a rapid rise in impulse form, as was expected in the previous review. Instead, the market "stumbles on the spot", forming a wave of a more complex shape. It is very likely that now there is an upward wave (y) of [x], which will take the form of a combination of zigzags. Thus, in the coming trading days, it is possible to raise the currency pair.
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