Monthly Wave Analysis for January 2016 (EUR/USD, GBP/USD, USD/JPY, AUD/USD)
30.12.2015
Forecast for January 2016
EUR USD, “Euro vs US Dollar”
At the daily chart, Eurodollar is forming the descending impulse in the wave (C). Consequently, if later the price completes the wave 4 in a proper way and doesn’t break the critical level (which is the minimum of the wave 1), it may resume its decline in the wave 5 of (C). Otherwise, the market may continue forming the correctional wave (B), probably in the form of the double three (an alternative scenario).
Probably, Eurodollar is still forming wave [b] in the wave 4, which is taking the form of the zigzag. Consequently, in the beginning of 2016, the market may fall sharply and break its local low. The pair may resume moving upwards as soon as the price forms the first wave in the wave [c].
GBP USD, “Great Britain Pound vs US Dollar”
At the daily chart, Pound is forming the descending impulse in the wave (C). On the minor wave level, the price is forming the third wave. It’s highly likely that in the beginning of January the pair may continue falling.
As we can see at the H4 chart, after finishing the wave 2, the market has formed the bearish wedge in the wave [i]. It looks like in the future the pair may continue forming the third descending wave.
USD JPY, “US Dollar vs Japanese Yen”
In case of Yen, one of the possible scenarios implies that the price is forming the horizontal triangle(4) in the bullish impulse. During the next month, the pair may continue moving sideways inside this correctional pattern.
More detailed structure is shown on the H4 chart. It looks like Yen is forming the bearish zigzagC inside the triangle. In the nearest future, the price may continue falling in the wave [c] of C.
AUD USD, “Australian Dollar vs US Dollar”
Australian Dollar is still influenced by the downtrend. probably, earlier the price finished the wave 4 in the form of the double three. In the future, the market may resume its decline in the wave 5 of (3).
At the H4 chart, the price has formed the wave [i] in the form of the wedge. It looks like the pair is about to complete the correctional wave [ii]. The market may start falling in the wave [iii] as soon as the price forms the descending impulse (the first wave) inside it.
RoboForex Analytical Department
Attention!
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.