ANALYSIS

W1

The daily chart of the pair represents a marking version of {d}-segment of NeoWave Reverse Alternation Triangle with basic cycle of weekly market data optimization period.

The previous week confirmed estimation that [a]-wave of the second pattern of Double Combination had terminated. As earlier, Contracting Triangle is still treated as our preferred case of development, and in spite of relatively high dynamics of [b]-wave commencing, we should take into account that this segment of the Triangle will not be shorter in time than the first segment. Besides, [b]-wave should extend for more than 61,8% retracement of [a]-wave. Therefore, the targets for long positions remain unchanged at 1,3 and above.

The case when [b]-wave is shorter than [a]-wave in time is not taken into account as it remains less probable, but in this case we would speak not about Contracting Triangle, but about one of Neowave`s patterns with another 2010 Low.

EUR/USD-W1:

Work chart: