Analysis for October, 2012
It is known that Euro was adopted in 1999, and all synthetic data prior to that year presented by different providers may differ significantly. That’s why a global chart of the EUR/USD currency pair looks like a mirror image of that of Swiss Franc. Taking this into account, we may assume that currently the pair is forming a large ascending double zigzag
, [W]-[X]-[Y] of z
We can’t exclude a possibility that the price may have already finished a descending triple zigzag
, W-X-Y-X-Z of (Z) of [X]
, and a major correction [X]
in the form of triple three
, although it’s yet to be confirmed. If it’s true, we can expect the pair to continue forming an ascending wave [Y]
in the form of a large (double) zigzag (A)-(B)-(C) of [Y]
One of the possible scenarios (but not the only one!) can be seen on the figure below. We may assume that the price has completed a descending triple zigzag
, W-X-Y-X-Z of (Z) of [X]
, and a new ascending trend has started. If the assumption is correct, it’s quite logical to expect the pair to continue moving upwards inside a possible zigzag [Y]
A global chart of Pound indicates that there are several possible scenarios. Over the last 20 years the price has been forming divergent horizontal triangle [X] of x
, a final wave of which, (E) of [X] of x
, probably hasn’t been completed yet.
We may assume that wave (E)
is taking the form of zigzag
, A-B-C of (E) of [X]
. If the assumption is correct, the pair will continue moving upwards without breaking the closest critical level and may complete a possible correction, B of (E)
near 1.7 or a bit higher, where there is a strong resistance level.
One of the possible scenarios implies that a correction [b] of B
has been finished in the form of diagonal triangle (c) of [b]
. At the moment Pound is forming an ascending wave [c] of B.
In this case it’s quite logical to an ascending trend to continue.
At the monthly chart of Franc we can see that over the last 40 years Swiss Franc has been forming a global descending structure, which may be identified as triple zigzag
. If the assumption is correct, then we can expect the long-term ascending trend after the price finishes forming such a pattern.
We can’t exclude a possibility that a final wave [C]
is taking the form of a large descending diagonal triangle
. The price may have completed a correction (4) of [C]
. In this case it’s quite logical to expect to move downwards and form a final zigzag (5) of [C]
. At the same time, one should take into account that currency interventions on the part of Swiss National Bank may change chart structure a lot.
One of the possible scenarios implies that the price is currently forming a descending zigzag A-B-C of (5)
. If it’s true, we can expect a descending trend to continue.
The structure of a global chart of the USD/JPY currency pair implies that the price is finishing (or may have already finished) a major descending trend in the form of a possible impulse (or double zigzag
). If the assumption is correct, we can expect this major trend to reverse upwards and start forming, at least, a global ascending correction.
One of the possible scenarios implies that a final wave V
is taking the form of diagonal triangle
, in which wave 
is shorter than wave 
. It means that the critical level is about 60 and the price mustn’t break it before completing the triangle
We may assume that the price is completing quite a long correction  of V
with skewed triangle (E) of  of V
, after which it’s quite logical to expect the pair to move downwards and form a final wave  of V