Analysis for May 20th, 2013
Euro reach the minimum of this descending wave at the level of 1.2800. We think, today the price may start a correction towards the third descending structure. A predicted target of this correction is at the level of 1.2930, at least. The structure of the correction itself will show the level where it may finish. An alternative scenario implies that the pair may reach a new minimum again and then start a correction, the fourth structure inside this wave.
Pound moved downwards and reached the target minimum at the level of 1.5160. We think, today the price may start an ascending structure with the target at 1.5275 and then form a new descending structure to reach the level of 1.5150. Later, in our opinion, the pair may start forming a reversal pattern fr a new ascending movement. The next target is at the level of 1.5790.
Franc is moving inside an ascending wave with a local target at 0.9770. We think, today the price may grow up a little bit to reach the above-mentioned target and then start a descending correction towards the level of 0.9500 at least. This correction may be considered as the fourth Elliott wave. The main target of the fifth wave is at the level of 0.9825.
The USD/JPY currency pair started forming the first descending impulse with a gap today. We think, today the price may form the second descending impulse. The target of the first impulse is at 101.90. At the current tops, the pair is expected to form a consolidation channel and a reversal pattern. We should note, that the price may start a new descending trend towards the level of 88.20.
It looks like Australian Dollar is going to form a reversal structure. We think, today the price may form the first ascending wave with the target at 0.9800 and then correct it. In case the first wave turns out to be strong enough, then according to the main scenario the pair may start an ascending correction to return to the level of 1.0235. Otherwise, the price may just reach a new minimum once again.
Gold continues moving downwards; it hasn’t broken a descending channel yet. We think, today the price may start the first ascending wave to break the descending channel and start forming head & shoulders reversal pattern. Later, in our opinion, the instrument may form an ascending wave to reach the level of 1500.
RoboForex Analytical Department