Introduction
According to the current wave picture local correction ii or a may be already completed for the European currencies and a new stage of the dollar strengthening, wave iii or c, has started. If the supposition is correct the expected movement may be very powerful and profitable.
1. EUR/USDFor EUR survey wave counting refer to Annual-07 and Monthly -0507 and article Possible perspectives of the European currencies for 2007. Refer to Figure 1 for the wave counting draft of this currency on 480 min chart.
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Figure 1. Wave counting on 480 min chart, v.1.
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According to scenario v.1 wave ii or b is completed, having assumed the shape of the double three. Ending of wave ii or b is the critical level for this variant.
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Figure 2. Wave counting on 120 min chart, v.1.
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Wave ii or b ending is not confirmed yet, though it is quite possible.
2. GBP/USDFor survey wave counting of this currency refer to Annual-07 and Monthly-0507 and article Possible perspectives of the European currencies for 2007. Refer to Figure 3 for the wave counting draft of this currency on 480 min chart.
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Figure 3. Wave counting on 480 min chart, v.1.
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According to scenario v.1 wave ii or b is completed, having assumed the shape of the extended flat. Ending of wave ii or b is the critical level for this variant.
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Figure 4. Wave counting on 120 min chart, v.1.
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Wave ii or b ending is not confirmed yet, though the wave picture signals in favor of this variant.
3. USD/JPYFor survey wave counting of this currency refer to Annual-07 and Monthly-0507. Refer to Figure 5 for the wave counting draft of this currency on 480 min chart.
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Figure 5. Wave counting on 480 min chart, v.2.
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As JPY does not form a proportional and clear-cut downward correction alternate variant is still probable. According to this scenario wave 3 of the diagonal triangle is assuming the shape of the narrow double/triple zigzag. Further upward movement in the narrow trend channel will confirm the alternative.
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Figure 6. Wave counting on 120 min chart, v.2.
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If the supposition is correct after 9-wave triangle (iv), which wave e of (iv) is also a triangle, upward price thrust will follow. This thrust will be equal at least the height of triangle (iv). Crossing of the upper boarders of the channels is also projected around 122.50.
4. USD/CHFFor CHF survey wave counting refer to Annual-07 and Monthly-0507 and article Possible perspectives of the European currencies for 2007. Refer to Figure 7 for the wave counting draft for this currency on 480 min chart.
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Figure 7. Wave counting on 480 min chart, v.1.
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According to scenario v.1 wave ii or b is completed, having assumed the shape of the running flat. Wave ii or b ending is the critical level for this variant.
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Figure 8. Wave counting on 120 min chart, v.1.
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Wave ii or b ending is not confirmed yet, though according to the wave picture it is possible.
Note
Given possible trading plans are purely informational purpose only and they should not be considered as trading guides or an invitation to make a transaction.
Reference:
May 31, 2007 When using any part of the article for publication or analytical materials reference to the author and Alpari Ltd. is obligatory
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