Wave Analysis 16.05.2016 (EUR/USD, GBP/USD, USD/JPY, AUD/USD)
16.05.2016
Forecast for May 16th, 2016
EUR USD, “Euro vs US Dollar”
Eurodollar is attempting to continue the current decline. It looks like the price is forming the wave (iii), which may be extended. During the week, the market may continue falling and reach new lows.
As we can see at the H1 chart, the wave (ii) took the form of the zigzag and was followed by the descending impulse in the wave i. After finishing the local correction, the market may start moving downwards in the wave iii of (iii).
GBP USD, “Great Britain Pound vs US Dollar”
In case of Pound, the situation is quite similar. It’s highly likely that at the beginning of the week the price may form the bearish extension in the wave (iii). Consequently, in the future the pair may resume moving downwards.
At the H1 chart, we can see that Pound is about to start a new decline in the wave iii. Earlier, the price formed the zigzag in the wave (ii) and the descending impulse in the wave i. It’s highly likely that the market may resume its decline during the day.
USD JPY, “US Dollar vs Japanese Yen”
Probably, Yen has already completed the diagonal triangle in the wave [v]. On the minor wave level, the price has finished the wave (v). Consequently, in the nearest future, the market may start moving upwards in the wave (i).
It looks like the price has completed the fourth wave in the wave (i) at the H1 chart. As a result, on Monday the pair may grow in the fifth wave and break the maximum reached last week.
AUD USD, “Australian Dollar vs US Dollar”
After finishing the impulse in the wave [c] of 4, Australian Dollar continues falling. Probably, the price is forming the extension in the wave (iii), which may yet continue for a while. As a result, we may see a new low soon.
More detailed structure is shown on the H1 chart. It looks like the price is completing the fifth wave in the wave iii. Consequently, after finishing the wave [5], the pair may start the ascending correction in the wave iv.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.