The beginning of the end. AUD/USD wave analysis

Analysis for October 24^th, 2014

In our previous review, “Ending of horizontal triangle. Wave analysis of AUD/USD for 20.10.2014”, we discussed a possible scenarios how the price may move to complete a descending impulse [v].



Probably, the pair has already finished horizontal triangle(iv) of [v] and started forming wedgei of (v) of the final descending wave (v) of [v]. In this case, after completing a local ascending correction ii of (v), the market is expected to start a descending impulse iii of (v).



If our assumption about triangle(iv) of [v] of C is correct, then the predicted target of a descending impulse (v) of [v] may be near level of 0.85.



The market has formed a possible descending impulse [v] of C of (4) with an extension in its third wave, (iii) of [v]. In this case, waves (v) and (i) of [v] are expected to be approximately equal in length, which is also confirmed by level of 0.85.

However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.

RoboForex Analytical Department