Trump's "two-week operation" in Iran, dubbed "Epic Rage," has entered its seventh month. Increasingly, Epic Rage looks more like Epic Lethargy, and with each passing month the US military and the White House are persuading the world that the threat is less formidable than advertised. Iran is not only putting up stiff resistance and answering every strike with one of its own. It is now dictating its own terms for ending the conflict and making no concessions. Tehran has seized the initiative, and Donald Trump simply does not know what to do with it.

At times I have the impression that America is being run by a child. Many of the US president's actions and statements provoke either laughter or complete bewilderment. If those actions had produced positive, albeit unexpected, results, perhaps the world would have applauded Trump. Instead, they have merely led to a growing number of statistical portals counting the US president's false statements, while his actions are being criticized even by American experts across a wide range of fields.

It is difficult for me to say in which area Trump's policies, which were supposed to revive America, have produced positive results. Yet Trump has not stopped there and over the weekend launched new strikes on Iran. After a month-long pause. What the purpose of these new strikes is, probably no one will be able to explain. Iran will not make concessions, it has no intention of dancing to Washington's tune, and it is also pursuing a cunning strategy of reducing Trump's authority after the midterm elections to the US Congress.

As a result, the new strikes on Iran were likely carried out so that Trump could then tell the world how Kharg Island was being blown to pieces. Presumably, at that moment the entire world was supposed to tremble. Recall that Kharg Island is Iran's largest oil hub, except that all Iranian ports are currently blocked by the US Navy. Therefore, strikes on Kharg make little sense, because Iran is not exporting oil by sea. Trump also posted on social media a video of the strikes on Kharg Island that was generated by artificial intelligence.

In addition, the White House leader said the US may soon carry out new limited strikes on Iranian facilities near the Strait of Hormuz. Trump still considers Hormuz open and explains the new strikes as necessary to contain Iranian attacks on commercial ships. I would add that only a few vessels a day are currently passing through Hormuz, somehow receiving transit permission from Tehran. Oil prices are rising again this week.

Pay attention to my other articles:

EUR/USD analysis, September 1. The market is once again taking Warsh at his word

Wave analysis of EUR/USD:

Based on the analysis conducted on EUR/USD, I conclude that the instrument remains within an upward trend segment (lower chart), while in the shorter term it has shifted into a new bullish wave sequence. In my view, now is an excellent time to form long positions. Unless the downward trend segment that began on January 28 takes on a more extended five-wave form — which would require a strong news background in favor of the dollar — EUR/USD is at the very beginning of a new, prolonged upward trend segment, with targets extending as far as the 1.25 figure.

Wave picture for GBP/USD:

The wave structure for GBP/USD has taken on an entirely clear shape. We now see on the charts a distinct corrective A-B-C structure, which has been completed. I therefore expect the formation of an upward wave sequence that is taking on an impulsive character and coincides with the impulsive structure in EUR/USD. If that is correct, then sterling is now in the third wave, and the targets for the entire trend segment lie above the 1.39 figure. Over the coming months I am considering only buying trades.

Core principles of my analysis:

1) Wave structures should be simple and clear. Complex structures are difficult to trade and often change.

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 about the direction of price movement. Do not forget protective stop-loss orders.

4) Wave analysis can be combined with other forms of analysis and trading strategies.