Wave Analysis 18.05.2016 (EUR/USD, GBP/USD, USD/JPY, AUD/USD)
18.05.2016
Forecast for May 18th, 2016
EUR USD, “Euro vs US Dollar”
It looks like Eurodollar is still forming the extended wave (iii). Earlier, the price completed the descending impulse in the wave (i) and the correction in the second wave. Consequently, in the nearest future the market may continue moving downwards.
More detailed structure is shown on the H1 chart. It’s highly likely that yesterday Eurodollar completed the second wave in the wave (iii). So, in the nearest future the market may continue falling in the wave iii of (iii).
GBP USD, “Great Britain Pound vs US Dollar”
Pound is also attempting to resume its decline. Probably, after finishing the wave (ii, the price started forming the descending extension in the wave (iii). In the nearest future, the market may continue falling and break the previous low.
As we can see at the H1 chart, the price completed the wave ii very close to the critical level, at the level where the price started forming the wave i. Most likely, the market has already started forming the wave iii, which may continue in the nearest future.
USD JPY, “US Dollar vs Japanese Yen”
In case of Yen, the main scenario remains the same and implies that the price has completed the wave v of (i). Earlier, the pair formed diagonal triangle in the wave [v]. After finishing the bullish impulse in the fifth wave, the market may start the descending correction in the wave (ii).
More detailed structure is shown on the H1 chart. Earlier, Yen completed the extended wave iii ands the correction in the fourth wave. It looks like right now the price is forming the diagonal triangle in the wave v of (i).
AUD USD, “Australian Dollar vs US Dollar”
After finishing the impulse in the wave [c] of 4, Australian Dollar continues falling. Probably, the price is forming the extension in the wave (iii), which may yet continue for a while. As a result, we may see a new low soon.
At the H1 chart, after finishing the extension in the wave iii, Australian Dollar formed the fourth wave. In the nearest future, the market may continue falling in the wave v of (iii) and break the local minimum.
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.