Wave analysis of EURUSD, GBPUSD, AUDUSD on January 31.
The currency pair is in no hurry to move in the downward direction, forming a correctional wave. It is not excluded that we see the initial part of a prolonged lateral correction. Today we should pay attention to the release of inflation in the euro area. On the eve we received a report on Germany, where the growth rate of consumer prices fell by 0.1%, this does not allow us to expect that today we will see positive data. Therefore, quotes may be somewhat sag, which speaks in favour of the fact that the correctional part is now being formed. Similarly, in the evening, the US Federal Reserve will announce the results of its first meeting this year. It is recommended to pay attention to this news, it will be published at 19:00 GMT Time.
In the last section, the market flies rather quickly in an upward direction. However, most likely, we see the construction of the middle part of the correctional wave 4. It is unlikely that we will see a big rise in price, because in the credit markets, there is a decline in the yield of 10-year UK government bonds relative to its counterparts in the US, which could put pressure on the British currency. Secondly, in the commodity market for the second day in a row there are sales of black gold, and due to the strong correlation of the current currency pair and Brent oil this may lead to a decrease in quotations in the near future.
The currency pair moves in a lateral direction, forming a corrective wave of a very complex shape. It is very likely that after a slight ascent, we will see a new descending movement, even if it is shallow. Thus, most likely, we will see the continuation of the development of a long and complex correction, which will be the beginning of wave B.
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