ANALYSIS

MN1

A version of {d}-wave marking of NeoWave Triangle with basic cycle of market data optimization in one week is represented on the daily chart of the pair.

The earlier represented alternative {iv}- wave of Terminal Impulsion is ruled out as there are some negative factors not signaling development of Terminal Impulsion. The main negative factors are the revealed complexity of {iv}- wave as compared to {ii}-wave and practically complete correction {iv}-wave of {iii}-wave while the limit norm should not extend 61,8%.

The above mentioned considerations had already some grounds, however, review of {d}-wave structure was caused by the events of the previous weeks and represented on monthly data optimization chart.

The first thing to be reviewed is structure of [A]-wave. Earlier, considering simple [A]-wave, terminated at the end of 2008, there were some permanent problems of revealing and according [B]-wave structure due to some difference in wave activity of different segments of the anticipated wave. At this point, these disputes have already been settled and [A]-wave, though it became more complex, consists of more similar segments as compared to [B]-wave. Diamond-shaped NeoWave Diametric pattern consists of segments similar in time and suggests logical explanation of Zigzag pattern formation for further [B]-wave.

Furthermore, comparison of [A] and [B] segments reveals the fact that [B]-wave formation time does not overlap [A]-wave formation time, however, we should take into account that [B]-wave did not correct [A]wave for more than 81%, which could mean a sign of failed [B]-wave and result into market weakness towards its direction in case of Flat Correction. However, [B]-wave does not exceed [A]-wave in time, therefore, the development delivers a sign that NeoWave Triangle should be formed. Hence, for this structure it is logical to anticipate termination of [C]-wave below [A]-wave and will become the lowest minimum of extremum for {d}-wave of higher degree.

Making a conclusion, we may mention that there still are grounds for long-term sales, however according to [C]-wave structure on charts of a shorter data optimization period, which will need further review. At this point, the preview suggests anticipation of [C]-wave Double Zigzag formation, where the first Zigzag has already terminated.

EUR/USD-MN1:

Work chart: