ANALYSIS

MN1

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. This version is similar to the preferable case on charts of shorter intervals of data optimization presented earlier.

The events of the previous week overlapped anticipation of rate decline, which has not been a positive sign for supporting the case of fifth wave developing in Terminal Impulsion. Furthermore, assuming the case when Terminal Impulsion has completed as well as [c]/[B] waves and further rate fall treated as starting of [C]-Impulsion wave developing has casted doubt as:

-Impulsion development is extremely difficult to detect on charts of shorter intervals of data optimization

-there is no identified corrective pattern in (5)-wave structure of Terminal Impulsion.

Under these circumstances it is logical to review [c]-wave structure. The result of such a review is shown on the chart.

[c]-wave is presented by Elaborate Correction as Double Combination, which automatically means formation of further [d]-wave in Triangle pattern in [B]-wave of higher degree. Whether this Triangle is Contracting or it is a NeoWave Triangle depends on the depth of recovery of [c]-wave, however, in any case the retracement should be at least 38%. On minimal values of [c]-wave the retracement of Reverse Alternation Triangle will take place, however some time consuming is needed for the [d]-segment with probable structure starting from Flat to various types of NeoWave Triangles.

EUR/USD-MN1:

Work chart: