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.


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