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Wave analysis of EUR / USD for May 10. Markets are waiting for a report regarding the inflation in the US. High forecast
Wave counting analysis:
On Thursday, May 9, trading ended for EUR / USD by 20 bp. However, the peak of May 1 was not updated respectively. The current wave marking remains unchanged and continues to suggest the construction of a downward trend. As before, I draw attention to the fact that the markets are now very reluctant to sell eurocurrency. This factor may prevent the pair to continue its decline. A successful attempt to break the peak of May 1 will indicate that the pair is not ready to build a downward wave, and the wave pattern will require additions. Today, the news background may be on the dollar side, as an important report regarding the inflation in the US with a high forecast will be released (+ 2.1%, which is higher than the target mark of 2.0%). Thus, it is possible that today the construction of the descending wave will continue.
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 pair continues to build the downward trend. The current wave counting implies a resumption of the pair reduction with targets at 1.1097 and 1.1045, which corresponds to 161.8% and 200.0% Fibonacci. The absence of a predisposition of markets for new sales of the pair and their caution in this matter hinders the execution of this scenario so far. A successful attempt to break through the peak of the alleged wave 2, 3, 3 will cancel the option with a decrease.
The material has been provided by InstaForex Company – www.instaforex.com
