Analysis for October 24th, 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