EUR / USD
Wednesday, September 4, the pair EUR / USD ended with an increase of 60 basis points. This was the reaction of the market to a good index of business activity in the service sector and the composite index of the European Union. Also pleased with the foreign exchange market and retail sales in Europe in July, there is an increase of 2.2% compared with July 2018. However, will the euro continue to rise?
The current wave marking indicates the incompleteness of the downward wave 3, inside which the construction of wave 5 is expected. Even if wave 3 is interpreted as s, that is, the downward section of the trend will end at the minimum of wave 3 or c, another downward wave should still be built. Thus, the news background can either support this wave picture or disrupt it. Of course, I hope for the first option. Today, all the news will come from America.
There will be release of an initial report on the change in the number of employed by ADP (ADP Employment Change) with a neutral forecast – an increase of 150 thousand.
Services PMI will be released a little later with a forecast of 50.9…
And the ISM Non-Manufacturing PMI (ISM) with a forecast of 54.0. Given the good forecasts for all economic reports, we can expect the growth of the US currency, which will coincide with the construction of the bearish wave 5.
Purchase goals:
1.1248 – 0.0% Fibonacci
Sales goals:
1.0893 – 161.8% Fibonacci
1.0807 – 200.0% Fibonacci
General conclusions and recommendations:
The euro-dollar pair continues to build bearish wave 3 and its internal correctional wave 4. I recommend selling the pair with targets near the calculated levels of 1.0893 and 1.0807, which corresponds to 161.8% and 200.0% Fibonacci, for the MACD signal is down.
GBP / USD
On September 4, the GBP / USD pair gained about 175 base points due to first positive expectations from the fateful meeting of the British Parliament, and then on the basis of the results of this meeting. Within its framework, it was decided to postpone Brexit to 2020 if Prime Minister Boris Johnson fails to conclude an agreement with the European Union until October 31.
Given that less than two months remain before this date, and the basic question regarding the issue of “back-up” on the Northern Irish border remains open, it is unlikely that an agreement will be reached. Thus, Brexit seems to be postponed indefinitely once again. This is positive news for the pound, as markets are very wary of the tough Brexit that Johnson wanted to implement.
Now, in the coming months, you can not be afraid of a hard break in ties with the EU. Therefore, the pound can get support from the news background. I expect to build a wave with targets above 23 figures.
Sales goals:
1.2016 – 0.0% Fibonacci
Purchase goals:
1.2306 – 38.2% Fibonacci
1.2401 – 50.0% Fibonacci
General conclusions and recommendations:
The downward trend section is still considered completed. Thus, it is now expected to build an ascending wave with targets located near the calculated levels of 1.2306 and 1.2401, which corresponds to 38.2% and 50.0% Fibonacci. You can buy a pound now when the news tension has subsided a bit, but I still do not recommend doing so in large volumes.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
If you have an interest in any area of Forex Trading, this is where you want to be.
Global Fx Trading Group is a world leader in providing Fx services to individual traders, including: Unmatched funding programs, on-line education, virtual trading rooms, automation tools, robot building, and personal coaching.
The company was first established by Jeff Wecker, former member of the Chicago Board of Trade, with 25 years in the industry. Jeff has a keen understanding of the needs of Forex traders and those needs are our focus.
Please join our VIP Group while is still
FREE …
https://t.me/joinchat/JqsXFBKpyj3YS4bLWzT_rg
Our mission is simple: To enhance as many lives as we can through education and empowerment.
#theforexarmy #forexsigns #forexsignals #forexfamily #forexgroup #forexhelp #forexcourse #forextrade #forexdaily #forexmoney #forexentourage #forextrading #forex #forexhelptrading #forexscalping #babypips #forexfactory #forexlife #forextrader #financialfreedom
