EUR / USD pair
On Friday, May 24, the EUR/USD pair trading ended with an increase of 25 basis points. Nevertheless, the current wave is counting despite the two-day growth of the Euro-currency. It suggests the construction of a downward set of waves, which remain in force. The only thing that should be noted is that the wave pattern takes a rather complicated form and the entire downward portion of the trend can turn out to be very long. Recent US releases have disappointed the market. The bears missed the opportunity to break through the minimum of April 26 and the instrument turned to the construction of the next correction wave. it became known on Friday that orders for durable goods declined in April. Moreover, the results of the elections to the European Parliament became known this morning, and according to which, the presence of European skeptics in the EU government is growing. It is impossible to state unequivocally that this is bad for the euro. This should simply be taken as a fact. A downward signal down from MACD will be a good reason for new sales of Eurocurrency.
Sales targets:
1.1097 - 161.8% Fibonacci
1.1045 - 200.0% Fibonacci
Purchase targets:
1.1324 - 0.0% Fibonacci
General conclusions and trading recommendations:
The euro/dollar is still in the process of building a downtrend trend. However, after the quotes move away from the lows reached, I recommend waiting for the signal down from the MACD and again selling the euro with targets at 1.1097 and 1.1045, which corresponds to 161.8% and 200.0% Fibonacci. I recommend placing a restrictive order above the Fibonacci level of 76.4%.
GBP / USD pair
On May 24, the GBP/USD pair gained 55 basis points. The political and economic situation remains difficult in the UK as the country waits for the election of a new prime minister. The conservatives have suffered a deafening defeat in the elections to the European Parliament, while the laborists also did not get the desired number of votes. Thus, Brexit remains unresolved. The sterling pound has been growing in the last few days but only because of weak statistics from America, which made experts speak again about recession in the United States. However, it does not matter much for the pounds/dollars pair because the situation in the UK is much worse. The country continues to lose a lot of money because of Brexit, but the exit as such has not even taken place. The investment attractiveness of the UK is very low and some companies want to leave the country due to incomprehensible future relations with the EU.
Sales targets:
1.2554 - 200.0% Fibonacci
1.2360 - 261.8% Fibonacci
Purchase targets:
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, I still recommend selling the pound now with targets located near the calculated levels of 1.2554 and 1.2360, which corresponds to 200.0% and 261.8% Fibonacci, but with one clarification. I recommend waiting for the signal down from MACD for new sales.
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