Wave Analysis 21.12.2011 (USD/CHF, EUR/USD)

Analysis for December 21^st, 2011

USD/CHF

The correction continues, that’s why we had to correct the chart structure a little bit. It looks like the price is finishing the formation of wave 2 inside the third one. In the near term, we can expect the price to start growing while forming wave 3.



We may assume that the price has finished zigzag pattern in the second wave with wave (B) completed in the form of horizontal triangle inside it. On the minor wave level we can see the formation of an initial rising impulse. If the up-trend continues, we can consider start trading while the price is moving upwards.

EUR/USD

The correction is taking too much time, that’s why the chart structure had to be corrected a bit. Currently the price is forming wave (2). An overall forecast is still bearish, and, consequently, we can expect the price to start moving downwards inside the third wave during the next several days.



As we can see that on more detailed wave markings, which are shown on the H1 chart, the second wave is taking the form of zigzag pattern with wave B completed in the form of horizontal triangle inside it. We may assume that at the moment the market is forming an initial descending impulse. If our assumption is correct, the price may reach the level of 1.3000 on Wednesday.