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 the EUR/USD pair, the main scenario remains the same and implies that the price may continue falling inside the third wave.
In case of the EUR/USD pair, the main scenario remains bearish.
The EUR/USD pair continues forming the wave (iii).
After completion of wave (ii) as a double three, market returned to descending. Apparently, descending third wave is forming.
Euro-US Dollar continue to descend in the third wave. Earlier wave (ii) was completed as double three that corrected descending impulse in wave (i).
Euro-US Dollar continue to descend within wave (iii). Earlier we got double three within correction wave (ii).
Scenario of marking with completion of wave (ii) as double three is kept in force.
Supposedly, wave (ii) on Euro-US Dollar was completed as double three that corrected earlier descending impulse in wave (i).
Apparently, for Euro-US Dollar corrected wave is finished (ii) taking look of double three.
Apparently, formation of corrected wave (ii) is continuing as double three.
Bearish marking for Euro is still actual. Apparently, earlier wave (ii) was completed as zigzag.
The main scenario remains bearish.
The EUR/USD pair is moving inside the local flat.
It looks like the EUR/USD pair has completed the wave (ii) ad started falling in the third wave.