Wave Analysis 13.12.2011 (USD/CHF, EUR/USD)

Analysis for December 13^th, 2011

USD/CHF

We may assume that the price started forming an extension in wave [3] of 3 and has successfully broken maximum of wave 1. In the near term, we can expect the price to continue moving upwards. The short-term target is the level of 0.9600.



At the H1 chart the price is forming an initial impulse in wave [3]. On the minor wave level we can see the formation of wave 3, which is almost completed. In the future we can expect the local correction to start.

EUR/USD

Taking into consideration the fact that wave (1) wasn’t very long, we can expect the third one to be extended. The bears were able to break local minimum, and the price may continue moving downwards during this week. The short-term target is the level of 1.2900.



At the H1 chart we can see the formation of wave 1 with the third one inside it. After wave [3] is completed, we can expect the correction to start. Most likely, the range of wave [5] will be equal to that of wave [1].