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10.06.201910:35 Forex Analysis & Reviews: Wave analysis of EUR / USD and GBP / USD for June 10. Reports in GDP and industrial production in the UK can return interest to the dollar

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EUR / USD

Exchange Rates 10.06.2019 analysis

Friday ended the pair EUR / USD with an increase of another 60 basis points. Thus, the whole part of the trend, taking its beginning as early as May 23, acquired a 5-wave view, which led to the introduction of corrections to the wave marking. The minimum of May 23 is now considered as the final point of the downward trend. If this is true, then the euro-dollar tool has begun building a new upward trend, at least three waves. Since four waves of 5 have already been built, we can witness the construction of a corrective part of the trend in the near future. The news background for the pair remains positive, but only in the short term. This is mainly because of the bad economic news from America. The eurocurrency was in demand in the last 2 weeks. If support for the news background will continue to be present, then, before Eurocurrency, there are good prospects for continuing to build the upward trend section. Otherwise, bearish sentiment may return to the market.

Purchase goals:

1.1367 - 76.4% Fibonacci

1.1447 - 100.0% Fibonacci

Sales targets:

1.1106 - 0.0% Fibonacci

General conclusions and trading recommendations:

The euro / dollar pair is presumably at the stage of building the first wave of a new trend segment. However, even today or tomorrow, the construction of a corrective set of waves can begin. Based on this, I recommend waiting for the start of building wave 2, and at its completion from the lows close to the mark of 1.1106 It is recommended to buy a pair of euro-dollar with targets located above the 14th figure.

GBP / USD

Exchange Rates 10.06.2019 analysis

On June 7, the GBP / USD pair made a successful attempt to break through the maximum of the supposed wave 4, with the updated wave marking. Thus, wave analysis involves the construction of a new upward trend section. However, unlike the EUR / USD instrument, the news background for the pound sterling is more neutral, since the problems associated with Brexit remain unresolved. It is this factor that keeps bulls from larger purchases of the pound. Thus, I do not exclude the complication of the internal wave marking of a wave and the resumption of a tool reduction. Today, there are data on GDP for April in the UK, as well as on industrial production. I believe that the real numbers may be lower than expected, which will cause the sale of the pair. If the data is positive, then the moderate growth of the tool will continue with goals.

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. Purchasing, from my point of view, is now associated with increased risks.

Chin Zhao
analytik InstaForexu
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