ANALYSIS

W1

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

The previous week brought a result of “leveling” of rate decline dynamics, favoring anticipations of close termination of [a]-wave within 10% deviation from the estimated point. Note that, the estimated point of Triangle [a]-wave termination is idealized in nature, some deviation here may show either strength of weakness of this wave as a result of anticipations of opposite quality of [b]-wave development. Observing such an ideal picture, we can anticipate [b]-wave development, which will retrace more than 61% of [a]-wave.

Drawing a conclusion from the above mentioned considerations for long-term positions it is logical to plan buying positions, however, with condition of confirmation of wave activity on a chart with a shorter data optimization period. Besides, we should take into account a 10% error in expectations of [a]-wave termination in time, which is acceptable during next three weeks.

EUR/USD-W1:

Work chart: