Article By RoboForex.com
In our previous review, “Expecting the uptrend. Wave analysis of AUD/USD for 18.09.2014”, we discussed a possible scenario how the price may continue a descending correction B of (5).
The price hasn’t broken the critical level yet, but got very close to it and changed the chart structure as right now the market is teetering on the edge between the main scenario and an alternative one.
Possibly, the pair has almost completed a descending zigzag, which may turn out to be the whole correction B of (5). However, the ratio between the lengths of the “legs” of this zigzag implies that right now the pair is forming some descending impulse, which is shown on the figure below.
A possible alternative scenario suggests that the descending movement, which the price has been making since July, may be described as unfinished impulse [v] of C of (4) that may complete a large correction (4).
If the market chooses an alternative scenario, the whole correction (4) may take the form of flat and complete quite soon. In this case, later the uptrend is expected to dominate inside wave (5) of [A].
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However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.
RoboForex Analytical Department
Article By RoboForex.com
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.