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.
In case of Pound, the situation isn’t changing.
The local correction in the wave (ii) of [iii] of 1 continues and it may take the form of the ascending double zigzag.
The correction in the wave (ii) of [iii] of 1 has become a bit more complicated, but the main scenario remains the same – probably, in the nearest future the market may start a strong and significant decline in the wave (iii) of [iii] of 1.
In case of Yen, the situation is still complicated.
The local correction continues and it may be followed by a significant descending movement in the wave (iii) of [iii] of 1.
Just as we expected, Eurodollar is starting to fall slowly in the large descending impulse (iii) of [iii] of 1.
During the market opening, Eurodollar chose the alternative scenario and reached a new local high, however it hasn’t changed the main scenario too much
Pound has been moving inside the narrow trading range for the second day in a row.
Nothing has changed in comparison with our forecast for September.
In case of Pound, the situation isn’t changing as well.
Eurodollar is still forming the local correction ii of (iii) of [iii], which may be followed by a fast decline in the wave iii of (iii) of [iii] and new local lows.
Eurodollar continues falling in the large descending impulse [iii] of 1 of (C).
Just as we expected. Pound has reached a new local low and almost completed the five-wave impulse i of (iii) of [iii].
After finishing the wave (i) of [iii] of 1, Eurodollar has started the correction (ii) of [iii] of 1, which may be followed by a further decline in the wave (iii) of [iii] of 1.
Probably, right now Eurodollar is finishing the wave (i) of [iii] of 1, which may be followed by the short-tern correction (ii) of [iii] of 1.