The legend in the InstaSpot team!
Legend! You think that's bombastic rhetoric? But how should we call a man, who became the first Asian to win the junior world chess championship at 18 and who became the first Indian Grandmaster at 19? That was the start of a hard path to the World Champion title for Viswanathan Anand, the man who became a part of history of chess forever. Now one more legend in the InstaSpot team!
Borussia is one of the most titled football clubs in Germany, which has repeatedly proved to fans: the spirit of competition and leadership will certainly lead to success. Trade in the same way that sports professionals play the game: confidently and actively. Keep a "pass" from Borussia FC and be in the lead with InstaSpot!
Next week, there will not be many important events or economic reports in the U.S. However, the market continues to pay less attention to economic indicators than one would like. Geopolitics remains at the forefront, but there has been so much discussion about geopolitics today that I will not repeat it. In my opinion, both instruments are poised to form a downward wave that could mark the first wave of a new downward segment of the trend. It is difficult to say at this point whether this segment will be impulsive or corrective; this will depend on the developments in the Middle East. The situation in the Middle East may revert to the state it was two weeks ago, in which case demand for the U.S. currency will rise, aligning with the current wave structure.
Among notable reports, I can only highlight retail sales and the University of Michigan Consumer Sentiment Index. As noted, there will be very few important reports, so the U.S. news background is unlikely to have any substantial impact on movements in the currency market. Therefore, despite any reluctance, we will have to closely monitor every statement from Donald Trump, every news update on the negotiations, and every piece of information from Iran. The worse the situation develops, the higher the likelihood that the market will return to buying the safe-haven dollar. Of course, the dollar is unlikely to fall below the 32 level against the pound, but I want to emphasize that no trader can predict how events in the Middle East will unfold. Therefore, anything is possible.
Based on the analysis of EUR/USD, I conclude that the instrument remains within an upward segment of the trend (see the lower picture) and, in the short term, is within a corrective structure. The corrective wave set looks quite complete and may take on a more complex, elongated form only if a stable and long-term ceasefire is established between Iran, the U.S., Israel, and ALL other countries in the Middle East. Otherwise, I believe that a new downward wave set may begin from the current positions. Or at least a corrective wave may develop.
The wave picture of the GBP/USD instrument has become clearer over time, as I had anticipated. Now we see a clear three-wave upward structure on the charts, which may already be coming to an end. If this is indeed the case, we can expect the formation of at least one downward wave (presumably a "d" wave). The upward segment of the trend could take on a five-wave form, but this will require the conflict in the Middle East to diminish rather than rekindle. Thus, the base scenario for the coming days is a decline into the 34-figure area or slightly lower. Everything will once again depend on geopolitical factors.
*Analiza tržišta koja se ovde nalazi namenjena je boljem razumevanju tržišta i ne pruža instrukcije za vršenje trgovanja.
Uz InstaSpot-ove analitičke preglede uvek ćete biti u toku sa tržišnim trendovima! Klijentima InstaSpot-a su dostupni mnogobrojni besplatni servisi za uspešno trgovanje.
