Forex Wave analysis and forecast
One of the key factors, which has influence on any trader’s success is his ability to correctly predict the market movements. The two main methods are technical and fundamental analysis of Forex market.
An important feature of fundamental analysis is its global nature. Events, which are analyzed in fundamental analysis, have long-term influence on supply and demand on the currency market. This information is composed of the news about the world’s biggest political and financial events. It’s hard to overestimate the influenced the news has on financial markets: when the most important news is published, the market volatility increases.
It’s quite easy for an experienced trader to analyze and predict how a single event may influence the market. However, analysis of several events, which may influence the market in completely different ways, is a very complicated and time-consuming process. This may be the reason why only approximately 20% of traders use fundamental analysis as their main forecasting tool.
Fundamental approach to Forex market analysis, unlike technical one, covers not only the prices and their changes, but the reasons for these changes as well. Each approach has its followers, advantages and disadvantages.
Pound has started a fast decline.
It looks like Eurodollar has completed the wave [ii], and right now is starting a new descending movement.
Pound is still being corrected.
After finishing the descending impulse in the wave [i] of 3, Eurodollar has started the correction.
At the H4 chart of EUR USD, Eurodollar has formed the descending impulse in the wave [i].
Eurodollar continues forming the local correction (ii) of [iii] of 1, which may be followed by a further decline of the pair.
Pound is about to finish the wave (1) of  of iii, which may be followed by the short-term ascending correction (2) of  of iii and a further decline of the pair.
Eurodollar is about to complete the wave (i) of [iii] of 1 inside the large descending impulse, which may be followed by the short-term ascending correction (ii) of [iii] of 1.
The forecast remains the same.
Eurodollar continues forming the descending impulse in the wave [iii] of 1 of (C).
Just as we expected, after finishing the correction ii of (i) of [iii], the price has started falling fast in the wave iii of (i) of [iii].
The price is finishing the local correction inside the large descending impulse.
Yen has moved very close to the critical level.
After finishing the local correction (ii) of [iii] of 1 in the form of the ascending double zigzag, Eurodollar has formed the first descending impulse in the wave (iii) of [iii] of 1.
Probably, after finishing the correction (ii) of [iii] of 1, Eurodollar has formed the first descending impulse of a new large decline.