Wave Analysis 16.12.2011 (USD/CHF, EUR/USD)

Analysis for December 16^th, 2011

USD/CHF

It looks like the current descending movement of the price is a corrective wave inside wave [3]. There is a possibility that the price may start growing again during the day. On the minor wave level we can see the formation of an initial rising impulse, which confirms our scenario.



At the H1 chart we can see that the pair is starting to slow down a bit. Within the next several hours the price may rebound from the channel’s lower border. After that we can expect the pair to continue growing in wave (5) of [3].

EUR/USD

It looks like the price is forming and extension inside wave (3). On the minor wave level we can see the formation of the fourth wave. In the near term, we can expect the local correction to be finished and the price to start falling down while forming wave 5 of (3).



After completing an extension in wave 3, the price started the formation of the fourth wave, which is about to be finished soon. On Friday the price may leave the trading range, in which it has been moving for the last several days. The market may reach a new local minimum within a couple of days.