Wave Analysis 12.12.2011 (USD/CHF, EUR/USD)

Analysis for December 12^th, 2011

USD/CHF

The price has completed an initial impulse in wave [1], and now the market is under correction. The second wave may be finished in the beginning of the week. Most likely, the market will continue growing up in the nearest future while forming the third wave. The short-term target is the level of 0.9600.



If we take a look at more detailed wave markings, which are shown on the H1 chart, we can see that wave [2] is taking the form of double zigzag pattern. At the minor wave level wave (X) is about to be finished soon. We can expect the local correction to be completed during the day, and then the price may start moving downwards in wave (Y) of [2].

EUR/USD

It looks like the price has completed a descending wedge pattern in wave (1). At the moment the market is being corrected in the second wave. The main forecast of the price movement is still bearish. In the near term, we can expect the price to reach a new local minimum.



At the H1 chart we can see that wave [1] turns out to be a small wedge pattern inside the similar bigger one, and this situation is in favor of the bears. During the day the price may grow a little bit while forming wave C of (2). In the future we can expect the market to start falling down again.