Wave Analysis 21.10.2016 (EUR/USD, GBP/USD, USD/JPY, AUD/USD)
21.10.2016
Forecast for October 21st, 2016
EUR USD, “Euro vs US Dollar”
It’s highly likely that yesterday the EUR/USD pair finished the wave [ii] and may soon start falling in the third wave. Earlier, the price completed the triangle in the wave E of (B) and started moving downwards in the wave [i]. Consequently, in the nearest future the market may continue its decline.
As we can see at the H1 chart, the pair finished the wave [ii] and started forming the descending impulse in the wave (i), which may be completed quite soon. As a result, on Friday the local correction may start.
GBP USD, “Great Britain Pound vs US Dollar”
In case of the GBP/USD pair, the scenario remains bearish. It looks like the instrument completed the fourth wave in the wave [iii]. Consequently, in the nearest future the market may fall in the wave (v) of [iii].
As we can see at the H1 chart, the pair probably completed the wave (iv) in the form of the zigzag and right now is forming the bearish impulse in the wave i. To confirm a new descending movement in the wave (v) of [iii], the market has to finish the wave i.
USD JPY, “US Dollar vs Japanese Yen”
The USD/JPY may yet continue forming the triangle in the fourth wave. It’s highly likely that during the next several weeks the price may continue consolidating and falling in the wave (d).
More detailed structure is shown on the H1 chart. It looks like the pair is about to finish the fourth wave in the descending wedgea. As a result, in the nearest future the market may fall in the wave [5] of a.
AUD USD, “Australian Dollar vs US Dollar”
The AUD/USD pair rebounded from the upside border of the horizontal triangle and started falling finished quickly. To confirm the bullish wave 5, the price has to form the descending impulse in the wave [i].
As we can see at the H1 chart, the pair completed the wave (c) of [e] and then formed the descending impulse in the wave (i). Consequently, after finishing the local correction, the market may start a new decline.
RoboForex Analytical Department
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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.