Wave analysis of the Forex market or Elliott wave principle is the type of technical analysis considering price to be similar to ebbs and flows. All price movements on the Forex market are subject to two types of waves:
- Impulse, or motive, phase – the waves which move price up or down (shown by digits)
- Correction phase: waves that respond to impulse (shown by letters).
The price initiated development of the wave [v] of the supposed wedge. However, before continuing the downward movement, it can go through a small correction witihn the internal second wave of the expected downward impulse . This correction can be used for search of the entry points into sales by th
The option with horizontal triangle as wave [b] is fully justified. Although the wave e of [b] is cut, this model can be identified with certainty, especially as the price rushed down after its development. Probably, at this moment an impulse is being shaped as the wave [c], so it is possible to cou
Currently the pair is within the flat correction, from where it is likely to move down. It seems that the impulse inside the wave has not been formed yet. So, in the near future we expect obvious decline to the critical level, at which it is expected to reverse and start impulse growth of the pair.