Wave analysis of major pairs

5 March, 2018

EUR/USD

Most likely, the market formed an upward impulse 1, and in the last section we see the beginning of the construction of a new downward correction wave 2. Thus, today it is possible to correct a decline in the currency pair. In favour of this scenario says the fact that in the debt market, the yield differential of 10-year government bonds of Germany and the US demonstrates a decline, it contributes to bearish sentiment. And also, the Friday release on the confidence index from the University of Michigan, in conjunction with the reduction in applications for unemployment benefits, signals the release of strong data on Non-Farm, which also will help reduce the currency pair. In this regard, today it is possible to open short positions.

GBP/USD

Most likely, we now see the construction of a small correction wave 4, after which completion, it is expected to form another downward impulse 5. Thus, in the near future, the probability of a decline is high. In addition, there is a negative dynamics in the credit markets, the yield of 10-year government bonds of the United Kingdom is declining relative to its counterparts from the US and Germany, which is a negative factor for the Pound. In this regard, today it is possible to reduce the price in momentum 5.

AUD/USD

Judging by the structure of the last section, the downward corrective wave B still may not be complete. Most likely, now we see the beginning of the construction of the downward impulse wave C, within which the currency pair will move forward today in a bearish direction. And given the fact that wave C will take an impulse character, we can see a fairly rapid fall. In this situation, it is possible to open short positions.


Source link   Presented by Arum Capital

EUR/USD now looks to 1.1853

EUR/USD has at last eroded overhead resistance offered by the 1.1745/50 area and attention is on the 1.1790 recent high. This is exposed and...

EUR/USD now eyes 1.1790 near term

We were of the view last Friday that the rally is running ahead of itself but added there is scope for EUR to test 1.1735 first before it should settle down...

EUR/USD hits 2-week highs near 1.1720

US dollar softness and upbeat Draghi remains supportive of the Euro. US retail sales to arrive at 0.4% m/m vs. 0.5% last in August. The US dollar...


EUR/USD fails again above 1.1600

The EUR/USD pair extends its choppy trend into the European session, unable to sustain the bounce once again above the 1.16 handle, as the bulls remain...

EUR/USD likely for further downside

We highlighted yesterday that the decline in EUR appears to have enough momentum to dip below last week's 1.1527 low but a clear break of 1.15...

EUR/USD could rebound to 1.1700

According to FX Strategists at UOB Group, the pair remains neutral although a rebound to the 1.1745/50 band remains on the cards in the next weeks...


EUR/USD bounces-back towards 1.1650

Fresh US dollar selling offers fresh life to the EUR bulls, 1.1650 back on sight. Technical set up favors further EUR short-squeeze, as focus shifts...

EUR/USD still room for recovery

EUR/USD consolidated yesterday following its recent break above the 55 day ma. This is constructive and there is scope for recovery. Nearby resistance...

Euro steady ahead of ECB meeting

Market sentiment received a solid boost after US President Donald Trump obtained concessions from the European Union to avert a transatlantic...

  


Share: