Wave Analysis 22.12.2011 (USD/CHF, EUR/USD)

Analysis for December 22^nd, 2011

USD/CHF

As we expected earlier, the price started the formation of the third rising wave. There is a possibility that the market may break the maximum of wave [1] before New Year. The target for the bulls is the level of 0.9700.



As we can see that on more detailed wave markings, which are shown on the H1 chart, the price completed wave [2] in the form of zigzag pattern, and now is forming an initial rising impulse in wave (1). During the day we can expect the price to continue growing.

EUR/USD

We may assume that zigzag pattern in wave (2) has been successfully completed, and now the price is forming initial waves inside the third one. The forecast of the price movement is still bearish. There is a possibility that the market may reach a new local minimum within the next several days. The target level for the bulls is 1.2600.



As we can see at the H1 chart, the price made a strong descending movement, thus completing wave C of (2) and starting wave 1. It looks like the market will continue moving downwards on Thursday. Euro may test the level of 1.2900 before the end of the week.