Analysis for 2016
EUR USD, “Euro vs US Dollar”
On the monthly chart, Eurodollar reached its downside target at 1.1000, but wasn’t able to form a proper correction, because the ascending structure had no potential to continue and in August the marker started a new downtrend to reach 1.0300. The price has already form four structures of this descending wave and in the future may form the fifth one with the above-mentioned target. By May of 2016, the pair is expected to return to 1.1000. Actually, the price is forming a downside continuation pattern inside a very large consolidation channel.
GBP USD, “Great Britain Pound vs US Dollar”
On the weekly chart, Pound broke the lower border of its consolidation range and formed the central part of the continuation pattern at 1.5110. Next year, the pair is expected to continue falling inside the downtrend to reach the target of the fifth wave at 1.4400.
USD CHF, “US Dollar vs Swiss Franc”
On the monthly chart, Franc is breaking the top of its first ascending wave and forming the central structure of the upside continuation pattern. The local target of this wave is at 1.1400. Next year, the price is expected to complete the third structure of the wave at 1.0700 and then return to 0.9900.
USD JPY, “US Dollar vs Japanese Yen”
As we can see at the monthly chart, Yen has almost reached the target of its ascending wave and right now is forming the first wave of the larger descending structure. The target of this wave is at 115.00. Next year, the price may reach the above-mentioned target and start a new correction to return to 120.60. Actually, the market is forming reversal structures at the top of the ascending wave.
AUD USD, “Australian Dollar vs US Dollar”
On the weekly chart, Australian Dollar is forming another descending wave with the target at 0.6600. Right now, the price has almost completed the fourth wave of the trend, the three-wave correction to return to 0.7380. Possibly, the price may form the fifth wave of this flag
correctional pattern with the target at 0.7420. Later, in our opinion, the market may continue forming the fifth descending wave to reach the main target.
USD RUB, “US Dollar vs Russian Ruble”
Russian Ruble has shown that it is strongly affected by the oil market and constantly following the oil prices. In case the oil prices reach a new low, the pair will grow immediately. However, the mains scenario implies that the price may fall to reach the lower border of its consolidation range. Actually, the market is expected to start falling towards 45.
XAU USD, “Gold vs US Dollar”
On the weekly chart, Gold is falling inside the third wave of the downtrend with the target at 870 (at least). The fact that the price is moving under the central structure means that it may reach the target at once. But, as we can see, the crisis influences the market in such a way, that we can hope that Gold might not be harmed too much. This is why any time the price reaches a new low, it forms a correctional wave as well. As a result, all we have is downside continuation patterns. Next year, the price may reach 1015 and then form another correctional wave towards 1250.
RoboForex Analytical Department