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The article about possible and interrelated price movement of 10 currency pairs EUR/USD, GBP/USD, USD/JPY, USD/CHF, EUR/JPY, GBP/JPY, CHF/JPY, EUR/CHF, EUR/GBP, GBP/CHF, will be released in the next few days.
Introduction
The expected local correction of the European currencies in favor of the dollar may last until the second half of April 2008 and be rather intricate.
1. EUR/USDFor survey wave counting of EUR refer to Annual-08 and Monthly-0208. 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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A lasting correction [iv] is forming, but it is premature to speak of its shape. Its first wave (a) of [iv] might be assuming a zigzag shape.
The second leg c of (a) of the supposed zigzag (a) of [iv] may be comparable by length with its first leg (perhaps in terms of Fibonacci coefficient).
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Figure 2. Wave counting on 120 min chart. Variant 1.
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The supposed correction b of (a) has reached the 62% mark which is an optimal value for a retracement, but so far there is no confirmation of its completion. The wave structure doesn’t rule out that a double zigzag with a triangle in the form of wave-link [X] of b and approximately equal legs [W] и [Y] of b is forming.
If this is the case price decline should be expected in the near term.
2. GBP/USDFor survey wave counting of GBP refer to Annual-08 and Monthly-0208. 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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Wave [iv] of a big downward impulse may continue forming while wave (b) of [iv] may be assuming the shape of a zigzag.
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Figure 4. Wave counting on 120 min chart. Variant 1.
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The second leg c of (b) of zigzag (b) of [iv] may be completing.
3. USD/JPYFor survey wave counting of JPY refer to Annual-08 and Monthly-0208. 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. Variant 1.
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For the last month practically horizontal but ambiguous knot has formed allowing different interpretations. If price fixes above the confirmatory level it will be the confirmation of the accepted scenario. Probably it will happen only after correction (ii)? forms.
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Figure 6. Wave counting on 120 min chart. Variant 1.
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Upward wedge (i)? may be forming.
4. USD/CHFFor survey wave counting of CHF refer to Annual-08 and Monthly-0208. Refer to Figure 7 for the wave counting draft of this currency on 480 min chart.
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Figure 7. Wave counting on 480 min chart. Variant 1.
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A lasting correction [iv] is forming, but it is premature to speak of its shape. Its first wave (a) of [iv] may be assuming a zigzag shape.
The second leg c of (a) of the supposed zigzag (a) of [iv] may be comparable by length with its first wave (perhaps in terms of Fibonacci coefficient).
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Figure 8. Wave counting on 120 min chart. Variant 1.
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The supposed correction b of (a) has reached the 62% mark which is an optimal value for a retracement, but so far there is no confirmation of its completion. The wave structure doesn’t rule out that a double three with a triangle in the form of wave-link (B) of [Y] of b is forming.
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
February 21, 2008 When using any part of the article for publication or analytical materials reference to the author and Alpari is obligatory
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