Wave Analysis 26.10.2016 (EUR/USD, GBP/USD, USD/JPY, AUD/USD)
26.10.2016
Forecast for October 26th, 2016
EUR USD, “Euro vs US Dollar”
The EUR/USD pair is about to finish the wave (ii) of the extension in the wave [iii]. Consequently, in the nearest future the market may resume its decline in the wave (iii) and break the low of the wave (i).
As we can see at the H1 chart, the wave (ii) is taking the form of the flat. On a shorter-timeframe, the pair is completing the bullish impulse in the wave c. As a result, in the future the market may resume moving downwards in the wave (iii).
GBP USD, “Great Britain Pound vs US Dollar”
The GBP/USD pair is still forming the extension in the wave [iii]. On a shorter-timeframe, the price is probably forming the diagonal triangle in the wave (v). Consequently, in the future the market may reach several new lows.
More detailed structure is shown on the H1 chart. The pair completed the wave i in the form of the zigzag and then started forming the ascending zigzag in the wave ii. In the nearest future, the market may finish the wave [C] and start moving downwards in the wave iii.
USD JPY, “US Dollar vs Japanese Yen”
Possibly, the wave (y) may turn out to be much shorter than expected. However, taking into account that right now the final form of the wave [iv] isn’t quite clear, the market has to form the descending impulse and fix below the Moving Average in order to complete the correction.
As we can see at the H1 chart, the pair is probably forming the diagonal triangle in the wave c of (y). If later the price rebounds from the pattern’s upside border, bears may try to start a new decline.
AUD USD, “Australian Dollar vs US Dollar”
The AUD/USD pair tested the upside border of the horizontal triangle once again. Considering that the price continues moving below it, the market is still expected to fall in the wave [i].
Probably, the pair is forming the flat in the wave (ii). Consequently, after finishing the wave c, the price may resume falling in the wave (iii). To confirm this scenario, the market has to form the descending impulse in the later wave.
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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.