Article By RoboForex.com
Analysis for October 6th, 2014
In our previous review, “Ending diagonal triangle. Wave analysis of XAU/USD for 01.10.2014”, we discussed a possible scenario how the price may complete the final descending impulse iii of (v).
Possibly, the pair has finished a descending impulse iii and is starting to form an ascending correction iv. Typically, the fourth waves of impulses take the form of long horizontal corrections or flats. If this assumption is correct, then the uptrend will dominate until the market completes an ascending correction iv.
An alternative scenario suggests that a descending impulse (v) has already been finished. In this case, the uptrend may dominate for a much longer period of time.
Probably, the pair has completed an extended descending impulse iii of (v) of the final impulse (v). At the moment, the market is expected to form an ascending correction iv of (v).
Our expectations on the daily chart haven’t changed. According to the main scenario, the market is finishing the final descending impulse (v) of [c] of A, which may complete a large descending zigzag 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
Attention!
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.
