Wave Analysis 20.12.2011 (USD/CHF, EUR/USD)

Analysis for December 20^th, 2011

USD/CHF

It looks like wave [4] is about to be completed very soon. Taking into consideration the fact that the price wasn’t able to form an extension inside the minor third wave of wave 3, we can’t exclude the possibility that it may form an extension in the fifth one. The forecast of the price movement is still bullish.



At the H1 chart wave (B) has been completed in the form of flat pattern. It looks like wave (C) of [4] has also been finished. In the near term, we can expect the price to grow inside the fifth wave. In order to start buying the pair, one is recommended to wait for a strong initial rising impulse.

EUR/USD

We may assume that the price has completed the fourth wave and is now starting forming a descending wave 5 of (3). The forecast of the price movement is still bearish. Most likely, the price will break the local minimum and reach the level of 1.2800 within the next several days.



It looks like the price has completed an initial descending impulse in wave 5. On the minor wave level the correction is taking place, and after it is finished, the price may continue falling down in wave [3] of 5.