Analysis for August 20th, 2014
In our previous review, “The final straight. Wave analysis of XAU/USD for 15.08.2014”, we discussed a possible scenario how the price may complete an ascending
zigzage of (iv).
Our mid-term expectations haven’t changed much - after finishing a horizontal
triangle
(iv) of [c] of A, the price is expected to fall lower than level of 1200 inside the final wave
(v) of [c] of A.
However, the completion of this
triangle,
(iv) of [c], is a bit delayed because a horizontal correction
[B] of e of (iv) (of the final ascending
zigzage of (iv)) turns out to be longer than expected.
Possibly, a descending correction
[B] of e of (iv) is taking the form of a horizontal
running triangle. At that, the uptrend is still dominating and offering good entry points to open long positions. However, the start of the final ascending wave
[C] of e of (iv) is pushed a bit back.
Considering such ratio between the main waves of
zigzage of (iv), the pair may well reach the previous predicated target at ~1375.
Probably, the market is finishing a descending
zigzag(C) of [B]. In order to complete a possible
triangle[B] of e, the price needs a couple of
zigzags, an ascending
(D) of [B] and a descending
(E) of [B].
However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.
RoboForex Analytical Department