Wave Analysis 05.01.2017 (EUR/USD, GBP/USD, USD/JPY, AUD/USD)
05.01.2017
Forecast for January 5th, 2017
EUR USD, “Euro vs US Dollar”
After finishing the descending wave 1 in the form of the wedge, the EUR/USD pair started a new ascending correction. Consequently, during the next several days the price may continue forming the wave 2 and break the local high.
As we can see at the H1 chart, the pair completed the bearish impulse in the wave [v] of 1 and then the bullish one in the wave [a]. As a result, after finishing the local correction, the market may continue growing in the wave [c] of 2.
GBP USD, “Great Britain Pound vs US Dollar”
In case of the GBP/USD pair, the price completed the descending impulse in the wave (i) and started a new ascending correction. In the nearest future, the market may continue forming the wave (ii), but later the price is expected to resume falling and break the low.
More detailed structure is shown on the H1 chart. After finishing the diagonal triangle in the wave v of (i), the pair formed the bullish impulse in the wave a. On Thursday, the price may continue forming the wave b, but later the market is expected to resume moving upwards in the wave c of (ii).
USD JPY, “US Dollar vs Japanese Yen”
Probably, the USD/JPY pair completed the bullish wave 1. On a shorter timeframe, the price finished the wave [v]. To confirm the correction, the market has to form the bearish impulse in the wave [a].
More detailed structure is shown on the H1 chart. It’s highly likely that right now the pair is forming the fourth wave in the wave [a]. Consequently, in the nearest future the market may continue falling in the wave (v) of [a].
AUD USD, “Australian Dollar vs US Dollar”
At the H4 chart, the AUD/USD pair completed two descending impulses, which may be first waves on different timeframes. As a result, in the nearest future the market may finish the wave (ii) and resume moving downwards in the wave (iii) of [iii].
It’s highly likely that the wave (ii) is taking the form of the double zigzag with the wave y inside it. Consequently, after finishing the local correction, the market is expected to resume growing in the wave [C] of y.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.