EUR / USD
On Monday, May 20, trading on the Forex market ended for the pair EUR / USD with a rise of several base points. However, the wave pattern remains the same and implies the construction of a downward wave of 3, 3, 3 as part of a downward trend section with targets located below the 11th figure. On Monday, the markets did not receive any interesting news and reports from world leaders. Only China said that negotiations with Trump on trade conditions were really deadlocked, and the American side was blamed for this. Allegedly, the States do not show sincerity and increase pressure, using various tricks to disrupt the negotiations. In fact, this only means that countries are unlikely to be able to agree in the near future. The US dollar, which continues to rise against the euro, may respond to this event with a new increase.
Sales targets:
1.1097 - 161.8% Fibonacci
1.1045 - 200.0% Fibonacci
Purchase goals:
1.1324 - 0.0% Fibonacci
General conclusions and trading recommendations:
The euro / dollar is still in the process of building a downward trend. Now, I recommend the bears to remain on the instrument with targets of 1.1097 and 1.1045, which corresponds to 161.8% and 200.0% in Fibonacci and a restrictive order above the level of 50.0% in Fibonacci, which can be gradually carried down.
GBP / USD
On May 20, the GBP / USD pair lost another 10 basis points and continues to build the estimated wave. Monday was marked by extremely low activity in the foreign exchange market. Nevertheless, wave c still looks very simple, but there are no signs of completion for its construction right now. An unsuccessful attempt to break the Fibonacci mark of 161.8% can lead to a departure of quotes from the lows reached. News background remains negative for the pound sterling. There are no positive news and messages from the UK. Accordingly, the markets find no reason to refuse selling the pound sterling. As a result, the decline in the pair GBP / USD will continue. Markets are waiting for the fourth vote in agreement with the European Union. And if the parliament again refuses to accept this agreement, then, at this moment Theresa May will surely resign.
Sales targets:
1.2675 - 161.8% Fibonacci
1.2554 - 200.0% Fibonacci
Purchase goals:
1.3175 - 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern of the pound / dollar instrument implies a continuation of the instrument decline within the wave c. Thus, now, I recommend sales with targets located near the estimated marks of 1.2675 and 1.2554, which corresponds to 161.8% and 200.0% in Fibonacci. An unsuccessful attempt to break through the 161.8% mark may lead to a departure of quotes from the lows reached.
The material has been provided by InstaForex Company - www.instaforex.com