Wave Analysis 18.10.2016 (EUR/USD, GBP/USD, USD/JPY, AUD/USD)
18.10.2016
Forecast for October 18th, 2016
EUR USD, “Euro vs US Dollar”
Probably, the EUR/USD pair formed the descending impulse in the wave [i]. Earlier, the instrument had finished the triangle in the wave E of (B). Consequently, after completing the local correction, the market may start a new descending movement.
More detailed structure is shown on the H1 chart. It looks like at the moment the pair is forming the ascending impulse in the wave (a), which may later be followed by a new local correction. After that, the market may form another bullish impulse in the wave (c) of [ii].
GBP USD, “Great Britain Pound vs US Dollar”
It’s highly likely the fifth wave in the wave (iii) was truncated. Right now, the GBP/USD pair is forming the wave (iv) and may reach a new local high. In the future, the market may resume falling in the wave (v) of [iii].
As we can see at the H1 chart, the wave (iv) is taking the form of the zigzag. In the nearest future, the market may finish the ascending impulse c and start falling in the wave (v). To confirm this scenario, the price has to form the descending impulse in the latter wave.
USD JPY, “US Dollar vs Japanese Yen”
Probably, during the next several weeks the USD/JPY may continue forming the triangle in the wave [iv]. In the nearest future, the market may form the descending wave (d), possibly in the form of the zigzag.
As we can see at the H1 chart, the pair completed the double zigzag (c) inside the above-mentioned triangle. Consequently, in the future the market may form the descending impulse in the wave a of (d).
AUD USD, “Australian Dollar vs US Dollar”
In case of the AUD/USD pair, things are coming to a head, I mean that the price is going to test the upside border of the triangle. If the price rebounds from it, the market may complete the correction and resume falling in the wave 5.
As we can see at the H1 chart, after finishing the diagonal trianglec of (b), the pair started forming the bullish impulse in the wave (c) of [e]. In the nearest future, the market may finish the bullish wave iii and start a local descending correction.
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.