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.
It looks like the EUR/USD pair is about to complete the wave (ii).
In case of the EUR/USD pair, the correction continues.
The EUR/USD pair is still being corrected.
It’s highly likely that the GBP/USD pair has started forming the extension in the wave [iii].
It’s highly likely that Eurodollar has started forming the descending extension in the wave (iii).
After completing the wave [ii] in the form of the zigzag, Eurodollar formed the descending impulse in the wave (i).
At the daily chart, Pound is forming the fifth wave of the descending impulse (C).
Eurodollar continues forming the flat, which may finally transform into the horizontal triangle.
In case of Eurodollar, the chart structure is getting more complicated.
Eurodollar is still being corrected.
Eurodollar is forming the ascending impulse (c) in the zigzag [ii].
Yesterday’s growth may result in the continuation of the correctional wave [ii].
Probably, yesterday Eurodollar completed the wave (ii) in the form of the flat.
It looks like after finishing the wave [ii] in the form of the zigzag, Eurodollar has started falling inside the third wave.
Probably, Yen is forming the diagonal triangle c in the wave (ii), which is taking the form of the zigzag.