ANALYSIS

W1

The daily chart of the pair displays a version of {d}-segment of NeoWave Reverse Alternation Triangle marking with one week market data optimization cycle.

The previous week has confirmed expectations of high bearish momentum with the result of overlap of border minimum for [a]-wave development. The break of the anticipated limit level is not critical for review of our main case of Double Combination, however, if rate decline exceeds 10% retracement (below 1.1840), then we will need to review [C]-wave structure to find a logical explanation for relatively intensive rate decline. As for preliminary considerations for a segment, currently marked as [a]-wave of the second pattern of Double Combination, it is logical to anticipate development of the third Impulsion, or C-wave, which can be the most dynamic within the frames of different triangles. As the general logic of [C]-wave development does not mean its Impulsion nature, therefore, we can assume formation of one of the types of Neutral Triangle. So far, there are no grounds to review our preferred case.

For planning trading short-term sales with close stops remain preferable.

EUR/USD-W1:

Work chart: