Wave Analysis 23.12.2016 (EUR/USD, GBP/USD, USD/JPY, AUD/USD)
23.12.2016
Forecast for December 23rd, 2016
EUR USD, “Euro vs US Dollar”
The EUR/USD pair is still forming the correctional wave [ii]. Earlier, the price completed the descending impulse in the wave [i]. Consequently, after finishing the correction, the market may resume falling in the wave [iii] of 3.
More detailed structure is shown on the M30 chart. After completing the ascending impulse in the wave (a), the pair started a new correction. Later, the market may resume growing in the wave (c) of [ii] and break the local high.
GBP USD, “Great Britain Pound vs US Dollar”
The GBP/USD pair is about to finish the wave (iii). Consequently, in the future the market may start the correctional wave (iv), which may later be followed by a new decline in the wave (v) of [v].
As we can see at the H1 chart, the wave iii of (iii) turned out to be shorter than the wave i of (iii). As a result, the wave v, which is being formed right now, can’t be longer than the wave iii. This is why in the nearest future the market is expected to start a new ascending correction.
USD JPY, “US Dollar vs Japanese Yen”
In case of the USD/JPY pair, the price is still forming the bullish impulse in the wave c of (y). Consequently, in the nearest future the market may break the local high. However, later the price may start a new correction and form the descending impulse in the wave i or a.
At the H1 chart, the pair finished the triangle in the wave (4) and may continue forming the ascending impulse in the wave [5] of c and break the high of the wave (3).
AUD USD, “Australian Dollar vs US Dollar”
In case of the AUD/USD pair, the price is still forming the descending extension in the wave (iii). On a shorter timeframe, the market completed the wave ii and started falling in the wave iii. As a result, during the next several days the pair may reach new lows.
As we can see at the H1 chart, after completing the wave ii in the form of the zigzag, the pair finished the descending impulse in the wave [1]. In the future, the market is expected to complete the local correction and resume falling in the wave [3] 0f iii.
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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.