Preview
For the last several months I received a great number of letters with a request to continue counting of JPY cross pairs. But in these currency pairs (and not only in them!) the situation is rather nontrivial and an attempt of a simple search of possible variants in each pair separately wouldn’t give an idea of the wave picture in whole.
As a result of searching a solution of this problem I decided to test a mathematical modeling approach within EWA. That’s why this week I’m planning to complete calculations and release an article where the approach itself will be described briefly and an attempt will be made to forecast possible and interrelated price movement until the end of 2009 of the following 10 currency pairs: EUR/USD, GBP/USD, USD/JPY, USD/CHF, EUR/JPY, GBP/JPY, CHF/JPY, EUR/CHF, EUR/GBP, GBP/CHF.
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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Supposedly correction b of (a) has assumed the shape of a triple zigzag and is completed. 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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The last upward movement has never formed in the shape of an impulse (refer to Figure 4 in Daily-150208), that allows to consider it to be a corrective structure. In this connection the current counting is changed too.
Supposedly wave [iv] of a big downward impulse continues forming while wave (b) of [iv] is 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 forming. If this is the case the price decline should be expected in the near term.
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.
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Figure 6. Wave counting on 120 min chart. Variant 1.
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Supposedly either an upward wedge (wave (i)?), or sequence of upward waves 1-2, 1-2 is forming. If this is the case the further price rise should be expected in the both cases.
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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Correction b of (a) may have assumed the shape of a wave flat and is completed. If this is the case a price rise should be expected in the near term.
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 18, 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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