All the most interesting events are behind us. To briefly recap, all three central bank meetings have taken place, significant ISM indices were released in the U.S. last week (along with a lone ADP labor market report), and American inflation figures were published (albeit with considerable delay). Additionally, the Nonfarm Payrolls report and unemployment rate have been missed for the second consecutive month due to the "shutdown." Undoubtedly, there are also important indicators in the Eurozone, but in my opinion, the market, which has ignored significant news for over a month, is not eagerly awaiting European reports to react to them.

What should we pay attention to? The wave analysis! This is currently the foundation of everything. I remind you that for several months we have been observing the construction of complex corrective structures, and at this moment the current downward structure has taken on a five-wave, quite complete appearance. Therefore, based solely on wave analysis, we can expect an uptrend for the EUR/USD instrument. Given that the news backdrop has been interpreted very ambiguously by market participants lately, I believe it will not hinder the euro's ability to continue rising if the market is inclined to do so.

Among the relatively important events in the Eurozone next week, I can highlight reports on industrial production and GDP. However, I do not expect anything extraordinary from the GDP report. The market is already familiar with the preliminary figures for the third quarter, and growth rates of the European economy remain extremely weak, although they do satisfy the European Central Bank. Recall that easing monetary policy typically leads to economic acceleration. The ECB has lowered interest rates eight times in a row, but the growth rates have barely changed. The last two quarters closed with minimal growth of 0.1% and 0.2%. Therefore, strong data from Europe are not to be expected. The euro will have to rely on a bullish market sentiment, wave analysis, and the weakness of the U.S. dollar. Regarding the latter, I think there will be the least problems.

Wave Picture for EUR/USD:

Based on the analysis of EUR/USD, I conclude that the instrument continues to construct a bullish segment of the trend. In recent months, the market has taken a pause, but the policies of Donald Trump and the Fed remain significant factors for the future decline of the U.S. currency. The targets for the current segment of the trend may reach up to the 25 figure. Currently, construction of corrective wave 4 continues, taking on a highly complex, elongated form. Its latest internal structure, a-b-c-d-e, is near completion or has already been completed. Thus, I am considering buying again, as all recent downward structures appear corrective.

Wave Picture for GBP/USD:

The wave picture for the GBP/USD instrument has changed. We continue to deal with a bullish, impulsive segment of the trend, but its internal wave structure is becoming more complex. Wave 4 has taken on a three-wave form, resulting in a very elongated structure. The downward corrective structure a-b-c-d-e in c of 4 is presumably nearing completion. I expect the main wave structure to resume its development with initial targets around the 38 and 40 figures.

Key Principles of My Analysis:

1. Wave structures should be simple and clear. Complex structures can be difficult to interpret and often undergo changes.
2. If there is no confidence in what is happening in the market, it is better not to enter it.
3. There can never be 100% certainty in the direction of movement. Don't forget about protective Stop Loss orders.
4. Wave analysis can be combined with other types of analysis and trading strategies.