You are here: Home > articles > Forex > Wave analysis of EUR / USD and GBP / USD for May 22. UK prepares for change of prime minister
Wave analysis of EUR / USD and GBP / USD for May 22. UK prepares for change of prime minister
May 22, 2019 9:22 amVideo
Latest News
- Trading Signals for GOLD (XAU/USD) for April 15-17, 2024: buy above $2,328 (200 EMA – 5/8 Murray) April 15, 2024
- Video market update for April 15, 2024 April 15, 2024
- Trading Signals for GBP/USD for April 15-17, 2024: buy above 1.2450 (21 SMA – 0/8 Murray) April 15, 2024
- The dollar has not reached its potential April 15, 2024
- Analysis of GBP/USD. April 15th. Retail sales in the USA allow the dollar to continue rising April 15, 2024
- China’s Q1 GDP growth next on the Asian calendar – Preview April 15, 2024
- Technical Analysis – Goldman Sachs stock gains on strong earnings April 15, 2024
- Trading Signals for ETH/USD (Ethereum) for April 15-17, 2024: buy above $3,125 (200 EMA – 2/8 Murray) April 15, 2024
- Analysis for EUR/USD on April 15th. Monday – a tough day for the euro April 15, 2024
- GBP/USD: trading plan for the US session on April 15th (analysis of morning deals) April 15, 2024
- EUR/USD: trading plan for the US session on April 15th (analysis of morning deals). Euro is at an impasse April 15, 2024
- GBP/USD: Will sterling hold steady against dollar? April 15, 2024
- Technical Analysis – USDJPY rallies to another fresh 34-year high April 15, 2024
- Will Netflix earnings take the share price closer to its record highs? – Stock Markets April 15, 2024
- EUR/USD. April 15th. Bulls panic and retreat from the market April 15, 2024
- GBP/USD. April 15th. The dollar gains confidence April 15, 2024
- Weekly forecast based on simplified wave analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, AUD/JPY, and the US Dollar Index April 15, 2024
- XM’s Heartfelt Ramadan Iftar Support April 15, 2024
- Weekly forecast based on simplified wave analysis of EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold on April 15th April 15, 2024
- Technical Analysis – US 500 reverses towards 123.6% Fibonacci April 15, 2024
EUR / USD
On Tuesday, May 21, trading on the currency market for the EUR / USD pair ended with a decrease of several base points, although during the day market activity was not weak and the instrument made a good movement up and then down. However, in general, the wave pattern has not changed at all, and it cannot even be supplemented now. This is for the better, as it convinces us of the correctness of the current wave marking, which assumes the continuation of the construction of a downward trend segment. The unsuccessful attempt to break through the level of 100.0% according to Fibonacci indirectly indicates the readiness of the market for new sales of the pair. Thus, the bears continue to move the pair down, based on the absence of a positive news background for the euro. Indeed, how can the demand for the euro appear if no good news comes from the European Union? Tonight, Mario Draghi and the markets will scrupulously search in his words for hints on the parameters of the new LTRO program, which will re-stimulate the EU economy. Any weakness in Draghi’s rhetoric will help with building wave 3, 3, 3.
Sales targets:
1.1097 – 161.8% Fibonacci
1.1045 – 200.0% Fibonacci
Purchase goals:
1.1324 – 0.0% Fibonacci
General conclusions and trading recommendations:
The euro / dollar is still in the process of building a downward trend. Now, I recommend the bears to remain on the instrument with targets at 1.1097 and 1.1045, which corresponds to 161.8% and 200.0% Fibonacci. I recommend transferring a restrictive order to the level of 100.0% Fibonacci.
GBP / USD
On May 21, the GBP / USD pair lost more than 100 bp from the high of the day, and Theresa May made a “smart” proposal to the parliament. According to her, she is ready to consider the possibility of holding a second referendum if the parliament supports her agreement on Brexit. Many parliamentarians are skeptical about such a proposal, and there is every reason to assume that they will not meet the premier. Moreover, there is reason to expect that the fourth vote on the Brexit agreement will fail, because nothing in the agreement itself changes. Theresa May is likely to retire this summer, regardless of the outcome of the fourth vote. Her successor might be Boris Johnson who can initiate new negotiations with the European Union. And the pound sterling continues to fall, since it has no other way now. Now, the dollar does not even need the news background from America for it to continue its growth. Now, the Forex market is definitely in a bearish mood.
Sales targets:
1.2675 – 161.8% Fibonacci
1.2554 – 200.0% Fibonacci
Purchase goals:
1.3175 – 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern of the pound / dollar instrument implies a continuation of the instrument decline within the wave c. Thus, now, I still recommend selling the pound with targets located near the calculated marks of 1.2675 and 1.2554, which corresponds to 161.8% and 200.0% in Fibonacci. An unsuccessful attempt to break through the 161.8% mark may lead to a departure of quotes from the lows reached.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: