Introduction
Currently the European currencies and the Japanese yen are moving mixed, but from the point of view of the wave picture a local correction in all the currencies under consideration should start in the near term.
1. EUR/USDFor survey wave counting of EUR refer to Annual-08 and Monthly-0108. 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. Variant 1.
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Supposedly the impulse (a) of [iv] completes forming. The correction [iv] itself may assume the shape of a downward zigzag.
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Figure 2. Wave counting on 120 min chart. Variant 1.
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A rather proportional downward impulse (a) has formed. After its completion one should expect upward correction (b) to develop to the 1.47 mark.
2. GBP/USDFor survey wave counting of GBP refer to Annual -08 and Monthly -0108. 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. Variant 1.
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Supposedly downward impulse [iii] completes forming. In the near term corrective wave [iv] is expected to develop.
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Figure 4. Wave counting on 120 min chart. Variant 1.
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After the completion of wave [iii] upward correction [iv] should be expected. It isn’t known so far what shape and size it will assume, but it is logical to expect its completion between levels 1.98-2.01.
3. USD/JPYFor survey wave counting of JPY refer to Annual -08 and Monthly -0108. Refer to Figure 5 for the wave counting draft of this currency on 120 min chart.
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Figure 5. Wave counting on 120 min chart. Variant 1-2.
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Currently the price has built up a downward zigzag to an impulse, having added a pair of waves (iv и v). If possible price decline fails to transform this downward movement into a double or triple zigzag, i.e. into a corrective structure, then scenario 1-2, considered yesterday (see also the Figure below) and scenario 3, considered in Annual-08 (see also Figure 7, below) seem to be the most probable.
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Figure 6. Wave counting on the daily chart. Variant 1-2.
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Quite an acceptable variant in the context of scenario 1 is shown in this Figure. If the ending of wave [iii] doesn’t descend below the 105.39 mark, the third wave [iii] will appear to be shorter than wave , and therefore it will be much more easier in future to project the ending of wave [v].
But even in this case the near term expectation of the further price movement remain the same— up to the marks 112-114.
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Figure 7. Wave counting on the daily chart. Variant 3.
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If scenario 3 is confirmed it may change dramatically the long term expectations in all the dollar pairs.
But even in this case the short term expectations of the further price movement remain directed upward to the marks 112-114, while the critical level remains equal to 103.91 (considered in the article Possible Trade with an Excellent Profit/Risk Ratio).
4. USD/CHFFor survey wave counting of CHF refer to Annual -08 and Monthly -0108. Refer to Figure 8 for the wave counting draft of this currency on 480 min chart.
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Figure 8. Wave counting on 480 min chart. Variant 1.
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Supposedly impulse (a) of [iv] completes forming. Correction [iv] itself may assume the shape of an upward zigzag.
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An upward impulse (a) has formed. After its completion a downward correction (b) is expected to develop below the 1.1 mark.
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
- Monthly Wave Analysis, January, 2008
- EUR/USD, (Monthly Wave Analysis, January, 2008)
- GBP/USD, (Monthly Wave Analysis, January, 2008)
- USD/JPY, (Monthly Wave Analysis, January, 2008)
- USD/CHF, (Monthly Wave Analysis, January, 2008)
January 22, 2008 When using any part of the article for publication or analytical materials reference to the author and Alpari IDC Corp. is obligatory
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