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.
The euro dollar continues the formation of wave 4, and takes the form of a zigzag. Previously it formed a downward momentum in the wave 3 or C.
The euro dollar continues the formation of wave 4, which is taking the form of a zigzag. Previously a downward momentum in the wave 3 of C was formed.
After finishing the wave [ii], Pound is attempting to resume its decline.
It looks like Eurodollar is still being corrected in the wave 4, which is taking the form of the zigzag.
Eurodollar is still forming the wave [b] of 4.
After finishing the wave [a], the pair has started a new local correction.
It looks like the pair has formed the wave [a] and started a new local correction.
Probably, Pound may yet continue forming the wave [ii].
The fast ascending movement made by Pound last Friday has completely changed the chart structure.
Probably, Eurodollar has completed the ascending zigzag in the wave 4.
Yen has broken the critical level and finished the impulse in the wave [c] of the zigzag in the wave X.
As we can see at the H1 chart, Pound has formed the zigzag in the wave (v), the bullish impulse in the wave (a), and then the wave (b).
Probably, last week Eurodollar completed the descending impulse in the wave 3 or C.
Yesterday the price started a fast ascending movement.
It looks like Eurodollar completed the wave (v) of [iii] on Wednesday and started a new correction.