19.05.202101:53 Forex Analysis & Reviews: Analysis of EUR/USD on May 18. European GDP continues to be negative

On the H4 chart, the wave pattern chart is still absolutely clear and does not require any additions. All movements are exactly in accordance with it. Therefore, the construction of a 3-in-3 wave presumably continues at this time, which can turn out to be extended. In addition, wave 3 of the new upward trend can also be very long. In this case, we expect for a new strong increase in the quotes of the Euro currency in the future. It was already mentioned that in order to develop the instrument and earn profit from it, a simple and understandable wave pattern is needed. This is the current pattern for the EUR/USD pair. There are currently simply no alternative markup options, as they are completely unnecessary. The nearest target for the instrument is the level of 1.2349, which corresponds to the high of the previous global wave 5.

The news background for this instrument was not too strong on Tuesday, although it was quite important at first glance. There was a report on the EU's GDP for the first quarter of the European Union. However, it was no different from the previous report for the same quarter and showed a contraction of the European economy by 0.6% qoq and 1.8% yoy. Therefore, the markets did not receive unexpected information, so they did not work out the well-known figures for a long time. However, the question still remains why the Euro is rising when its economy is collapsing, against the US dollar, whose economy is recovering at a high rate. But there are often illogical and inexplicable situations in the market. The main thing is that there is a wave pattern, which is performed with accuracy and allows us to work and earn money. In addition, the ECB President Christine Lagarde will make a speech, who is unlikely to give interesting information to the markets. What can Lagarde's rhetoric be? It is unlikely to be positive, since there were definitely no positive changes in the economy over the past week. Therefore, the rhetoric can be either neutral or negative. As already noticed, negative information is often ignored by the markets or used only to build a local correction wave. In turn, there can be no reaction to the neutral information. As for the United States, data on the number of construction permits issued and the number of new foundation stones were published. Despite the fact that the second indicator was much worse than the expectations of the markets, it is believed that it did not attract the attention of the markets, as the Euro currency is increasing all day.

Based on the analysis, an upward trend will still form. At this time, the construction of the correctional wave 2 or b, as well as the internal wave 2 as part of the assumed 3, could have already been completed. Thus, it is suggested to buy the instrument with targets near the 23rd mark., for each MACD upward signal. There are no reasons to revise the current wave pattern yet.

The wave pattern of the upward trend section is still quite complete, five-wave form and is not going to get complex yet. But the section of the trend, which started to form immediately after it, took on a corrective and fully completed form. If the current wave pattern is correct, then the formation of a new upward trend section has begun and continues, and its two first waves have recently completed.