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 previous week`s main event appeared to be “unexpected” Diametric`s low renewal, which led to additional evaluation of wave activity in search of possible alternatives.

The main conclusions from observing the current development are as follows:

-Current development of [f]-wave in monthly data optimization period chart logically corresponds to Diametric structure of a higher degree both in time and in length. The focus should be placed on the peculiarity that in a higher period [f]-wave is the last wave opposite to pattern direction (opposite to [a]-wave) and it may carry signs of bearish potential before the pattern is completed, i.e. before the final segment of Diametric.

-In weekly data optimization period the anticipated (G)-wave remains shorter than (E)-wave, but it is longer in time, which delivers a sign that bearish potential is getting weaker, however, the weakness is a bit overestimated.

-Double break of (B)-(D) Double Combination confirms [f]-wave structure and does not need a review.

-The case about (G)-wave structure, namely Double Combination includes elongated patterns, as a sign that renewal of Diametric`s low should be treated as (a)-wave of Contracting Triangle. It means that (G)-wave will be the longest wave of Diametric. Nevertheless, the anticipated structure of (G)-wave does not require additional confirmation to be a case of development.

Summarizing the abovementioned considerations, short-term buying positions from lower levels with protective stop below last week`s minimum remain relevant.

EUR/USD-MN1:

Work chart: