Imaginary Skewer

Local price movement against the dollar was completed on September, 5. I assume it was the second wave (X) of the triple zigzag. At the same time it might be a part of this wave-link, e.g. wave A of (X), whereas wave (X) may still keep forming.

The last variant arose from the following facts:

At first, many-week horizontal triangle, formed on the charts of all described currency pairs in 2004 (in figures below it is encircled by blue ellipse). Its skewer may become the skewer of further corrections in future – now and/or from the second half of 2006 on the way back of price movement against the dollar.

Secondly, correction three pattern (probably, wave (A of (X)), which tested this skewer by its middle part;

At last, this variant does not contradict the supposition that triple zigzag is forming, that is considered to be the main one.

In case this variant is confirmed, in the nearest future this skewer may become the center of quite an extended horizontal or almost horizontal correction, e.g. horizontal triangle or (running) triple three.

Figure 1. Possible skewer for USD/CHF.

Figure 2. Possible skewer for EUR/USD.

Figure 3. Possible skewer for GBP/USD.

Figure 4. Possible skewer for USD/JPY.

Note that this is one variant of further price behavior in addition to the scenarios, described previously (refer to Possible Variants of Correction Development until March, 2006 (in Russian). I hope that in the nearest future price will either confirm or cancel it.

Reference