empty
 
 
pk
سپورٹ
فوری اکاونٹ کھولیں
تجارتی پلیٹ فارم
رقم جمع کروانا / نکلوانا

23.05.202419:41 Forex Analysis & Reviews: Analysis of EUR/USD pair on May 23rd. Buyers make a second attempt to test the 1.0880 level

The wave pattern on the 4-hour chart for EUR/USD remains unchanged. Currently, we are observing the formation of a presumed wave 3 in 3 or c of the downward trend segment. If this is the case, the decline in quotes will continue for quite some time, as the first wave of this segment completed its formation around the 1.0450 mark. Therefore, the third wave of this trend segment should conclude below this level.

The 1.0450 mark is the target for the third wave alone. If the current downward trend segment becomes impulsive, we could see five waves, and the euro could fall below the 1.0000 mark. Of course, it is challenging to expect such a development now, but the currency market has had plenty of surprises in recent years. Anything is possible.

Could the wave pattern change? However, if we have observed a new upward trend segment since October 3 last year, the previous downward wave does not fit into any structure. Therefore, an upward segment is possible only with a significant complication of the wave pattern. In recent weeks, the pair has only been rising, threatening the integrity of the wave pattern.

The 1.0880 Mark Held Off the First Wave of Buyers

On Thursday, the EUR/USD rate increased by 30 basis points but retreated slightly during the American session. Today's market sentiment was influenced exclusively by business activity indices in Germany, the Eurozone, and the USA. In Germany, the index exceeded market expectations. The services sector reached 53.9, and the manufacturing sector was at 45.4. The Eurozone saw a similar pattern, with the services sector at 53.3 and manufacturing at 47.4. However, the US also reported better-than-expected figures, with services at 54.8 and manufacturing at 50.9. Consequently, all six indices that mattered to the market today exceeded expectations. It's not surprising that demand for the euro increased in the morning and until the release of the American statistics, after which the demand for the US dollar rose.

However, I want to highlight another significant aspect. If it weren't for the stronger American indices, buyers would have been ready today or tomorrow to push the pair to the 1.0880 mark. This mark remains the last barrier for the euro on its path to transforming the entire trend segment into an upward one and also the last hope for the dollar. Today, the US currency was fortunate, as the last month has mostly seen weak economic data from America. But tomorrow or next week, buyers may again attempt to break through the 1.0880 mark.

General Conclusions

Based on the analysis of EUR/USD, the construction of the downward set of waves continues. In the near future, I expect the formation of the impulsive downward wave 3 in 3 or c with a significant decline in the pair. I continue to look for a favorable moment for new sales with targets around the estimated mark of 1.0462. A failed attempt to break the 1.0880 mark, equivalent to 61.8% Fibonacci, may indicate the market's readiness for new sales.

On the higher wave scale, it is clear that the presumed wave 2 or b, which has reached more than 61.8% Fibonacci of the first wave, may be completed. If this is indeed the case, then the scenario of forming wave 3 or c and a decline below the 1.0000 mark may unfold.

Basic Principles of My Analysis:

  1. Wave structures should be simple and understandable. Complex structures are difficult to trade and often change.
  2. If there is confidence in the market situation, it is better to avoid entering.
  3. There is never 100% certainty in the direction of movement. Always use protective Stop Loss orders.
  4. Wave analysis can be combined with other types of analysis and trading strategies.

*تعینات کیا مراد ہے مارکیٹ کے تجزیات یہاں ارسال کیے جاتے ہیں جس کا مقصد آپ کی بیداری بڑھانا ہے، لیکن تجارت کرنے کے لئے ہدایات دینا نہیں.

Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.

ابھی فوری بات نہیں کرسکتے ؟
اپنا سوال پوچھیں بذریعہ چیٹ.