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).
Perhaps, we are dealing with correction in the emerging momentum in the wave iii. If this is true, then soon we expect resumption of decline of the pair in impulse form. At the same time, to open additional trades, we still should wait for update of a local Low by the price. Do not forget about the
Probably, at the moment the wave [iii] of the descending impulse is being formed, which is far from being completed. In short, there is a very good potential for a deeper drop, so we should not of purchases. To open mire trades, we should wait for the update of a local Low by the price either enter
The current wave frame is favorable for the upward impulse. So far, there is no evident bullish wave, so entering the market is not worth. It is better to wait for the clear impulse wave and on correction either open Buy trades or set a pending Buy Stop order at the local High around 101.70 The cur