ANALYSIS

W1

On the daily chart of the pair a version of marking of the alternative waves "{d} or {iv}" with basic cycle of optimization of market data in one week is presented.

The events of the previous week gave grounds for marking corrective three-wave chain (a)-(b)-(c) included into (B)-wave, and practically confirm the scenario of development of NeoWave Reverse Alternation Triangle. In this case, we have already got typical signs of formation of the above-mentioned pattern such as ratio between (B)-wave about 38,2% and (A)-wave and close comparative duration of (A) and (B) waves. Further development implies (C)-wave of similar dynamics to (A)-wave, however, close to 61,8% of the ratio to this wave (to 1,4010).

Nevertheless, on the chart (B)-wave is marked with a question mark, as specifics of development of any type of triangles, especially NeoWave triangles does not always have sufficient signs for determination completion of its segments on the way of development. In general, complete confidence regarding marking segments of these patterns may appear only after they are completed. In this case, considering (a)-(b)-(c) chain on the chart of a shorter interval we have obtain harmonious time proportions of Flat Correction formation where (b)-wave has double duration in case when (a)-wave equals (c)-wave. On the other hand, insufficient retracement of (a)-wave combined with ratio of amplitude of 138% (c)-wave to (a) is an indirect sign of preservation of some bullish momentum, which is not a positive aspect regarding expectation of (C)-wave of a higher degree would be close by dynamics to (A)-wave. Therefore, though it is considered less possible, however, probable, (B)-wave is not completed yet and its development may be similar to Expanding triangle development which is expected to complete above 1,4800.

EUR/USD-W1:

Work chart: