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.

At this point, [C]-wave structure is far from being clear as well as from its termination, therefore, at this point, the simplest version explaining the current situation is the view that Complex Correction should be formed by type of Double Combination. The represented view shows that the first standard Zigzag pattern is completed, minor [x]-wave and Contracting Triangle pattern within the current development of [a]-wave should commence. Double Combination variant meets criteria of [C]-wave development with minimal requirements that [C]-wave should terminate below the lowest point in [A]-wave.

At this point, there are no signs confirming that [A]-wave is close to termination. Under this variant of Double Combination the [A]-wave amplitude may extend further until it even ends at an equal distance from the first pattern`s amplitude, added to its termination.

Besides, we should pay attention to proportionality of Complex Correction segments in time. For instance, the total length of Zigzag segments [a] and [b] is equal to [c]-wave length. The length of the anticipated [x]-wave is close to 61% of aggregate length of the previous pattern. Therefore, the focus should be placed on dynamics of the second pattern within the borders of the first pattern, where we may notice that the current development exceeds the chart. Thus, we can anticipate rate correction with preference of planning short-term sales for the upcoming week.

EUR/USD-W1:

Work chart: