Article By RoboForex.com
Analysis for October 27th, 2014
In our previous review, “Ending of an ascending zigzag. Wave analysis of USD/CAD for 17.10.2014”, we discussed one of the possible scenarios how the price may complete an ascending zigzag (b) of [iv] and start a descending zigzag (c) of [iv].
The wave structure on the H4 chart implies that the price may have chosen one of the alternative scenarios, according to which, the market has already completed an ascending zigzag (b) of [iv] and started forming diagonal triangle a of (c) of [iv] of a descending zigzag (c) of [iv].
The main difference between this scenario and the previous one (which may still happen) is that the pair may continue falling without breaking the closest critical level at 1.1383.
Our mid-term expectations haven’t changed so far. The market continues forming a descending correction [iv] of C of (C), which is taking the form of a running horizontal pattern. Probably, the pair has already started forming its descending zigzag (c) of [iv]. If this assumption is correct, then after this triangle, the market may make the final ascending movement inside wave [v] of C of (C).
However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.
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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.
