Wave analysis of EUR / USD and GBP / USD for June 7. Bears are waiting for strong Nonfarmov
June 7, 2019 10:21 am
EUR / USD
Yesterday’s trading day for the EUR / USD pair unexpectedly ended with an increase of 55 basis points. Although the rhetoric of Mario Draghi left much to be desired, all market expectations boiled down to the fact that the Eurocurrency, with such an attitude, the head of the European regulator will fall again. However, the euro was in demand among traders, which led to an update of the previous day’s high. Thus, the current wave counting still implies a decline in the euro / dollar instrument within wave 5, but wave 4 takes on a rather unambiguous view. The news background is now difficult to call supporting any particular currency, since the latest news from America was very weak, but the European Central Bank did not particularly pleased the markets. Thus, the news background can now be called neutral. Today, it can shift in favor of the American currency, if the afternoon reports are planned for the number of new jobs outside the agricultural sector. Unemployment and wages will exceed the forecast values. Although, in fact, the markets are waiting for more negative statistics, which may cause additional demand today for Eurocurrency, and the wave pattern in this case can be transformed.
Purchase goals:
1.1278 – 50.0% Fibonacci
1.1317 – 61.8% Fibonacci
Sales targets:
1.1106 – 0.0% Fibonacci
General conclusions and trading recommendations:
The euro / dollar pair has presumably completed the construction of the correctional wave 4. Thus, I recommend now to start cautious sales of the pair with targets under the 11th figure, based on the construction of wave 5 of the downward trend segment. I recommend placing limit orders above the 61.8% Fibonacci level, a breakthrough of which will indicate the pair’s readiness to build an upward trend section.
GBP / USD
On June 6, the GBP / USD pair literally gained a few basis points, and without having managed to update the previous peak, which is now interpreted as wave 2, in p. In any case, if the market fails to update the peak of May 27, the chances of resuming the construction of a downward trend section will increase many times. Today, the situation on the instrument pound / dollar should be clarified. In the afternoon, the markets will be immersed in a study of statistics from America regarding unemployment, wages and nonfarms. These are potentially very strong reports, so markets are unlikely to ignore them. The power of these reports can bring traders back to a dollar. But on the subject of Brexit, there are no news. The pound sterling is still very restrained in responding to encouraging news that do not come from the UK.
Sales targets:
1.2554 – 200.0% Fibonacci
1.2360 – 261.8% Fibonacci
Purchase goals:
1.3175 – 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern of the pound / dollar instrument suggests a resumption of the instrument decline within the estimated wave c. Thus, now, I recommend waiting for a breakout level of 200.0% and selling the pound with targets located near the calculated levels of 1.2360 and 1.2176, which corresponds to 261.8% and 323.6% in Fibonacci. An unsuccessful attempt to break through the 200.0% mark could lead to the completion of the construction of the downward trend, but so far, there is no confirmation of this assumption.
The material has been provided by InstaForex Company – www.instaforex.com
EUR / USD
Yesterday’s trading day for the EUR / USD pair unexpectedly ended with an increase of 55 basis points. Although the rhetoric of Mario Draghi left much to be desired, all market expectations boiled down to the fact that the Eurocurrency, with such an attitude, the head of the European regulator will fall again. However, the euro was in demand among traders, which led to an update of the previous day’s high. Thus, the current wave counting still implies a decline in the euro / dollar instrument within wave 5, but wave 4 takes on a rather unambiguous view. The news background is now difficult to call supporting any particular currency, since the latest news from America was very weak, but the European Central Bank did not particularly pleased the markets. Thus, the news background can now be called neutral. Today, it can shift in favor of the American currency, if the afternoon reports are planned for the number of new jobs outside the agricultural sector. Unemployment and wages will exceed the forecast values. Although, in fact, the markets are waiting for more negative statistics, which may cause additional demand today for Eurocurrency, and the wave pattern in this case can be transformed.
Purchase goals:
1.1278 – 50.0% Fibonacci
1.1317 – 61.8% Fibonacci
Sales targets:
1.1106 – 0.0% Fibonacci
General conclusions and trading recommendations:
The euro / dollar pair has presumably completed the construction of the correctional wave 4. Thus, I recommend now to start cautious sales of the pair with targets under the 11th figure, based on the construction of wave 5 of the downward trend segment. I recommend placing limit orders above the 61.8% Fibonacci level, a breakthrough of which will indicate the pair’s readiness to build an upward trend section.
GBP / USD
On June 6, the GBP / USD pair literally gained a few basis points, and without having managed to update the previous peak, which is now interpreted as wave 2, in p. In any case, if the market fails to update the peak of May 27, the chances of resuming the construction of a downward trend section will increase many times. Today, the situation on the instrument pound / dollar should be clarified. In the afternoon, the markets will be immersed in a study of statistics from America regarding unemployment, wages and nonfarms. These are potentially very strong reports, so markets are unlikely to ignore them. The power of these reports can bring traders back to a dollar. But on the subject of Brexit, there are no news. The pound sterling is still very restrained in responding to encouraging news that do not come from the UK.
Sales targets:
1.2554 – 200.0% Fibonacci
1.2360 – 261.8% Fibonacci
Purchase goals:
1.3175 – 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern of the pound / dollar instrument suggests a resumption of the instrument decline within the estimated wave c. Thus, now, I recommend waiting for a breakout level of 200.0% and selling the pound with targets located near the calculated levels of 1.2360 and 1.2176, which corresponds to 261.8% and 323.6% in Fibonacci. An unsuccessful attempt to break through the 200.0% mark could lead to the completion of the construction of the downward trend, but so far, there is no confirmation of this assumption.
The material has been provided by InstaForex Company – www.instaforex.com
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