Wave Analysis 26.12.2011 (USD/CHF, EUR/USD)

Analysis for December 26^th, 2011

USD/CHF

The correction in wave 2 has been completed, and on the minor wave level we can see the formation of an initial rising impulse inside the third wave. The forecast is still bullish, their target is at the level of 0.9700. However, there is a possibility that they may reach it only after the New Year.



At the H1 chart we can see the formation of an initial rising impulse in the form of wedge pattern with the fifth wave inside it. We shouldn’t expect the market to make any serious movements during the next several days. Most likely, the price will continue moving downwards inside a very narrow trading range during the next week.

EUR/USD

The market tends to be quite inactive these days as everyone is looking forward to the New Year’s holidays. The price is slowly forming an initial impulse in wave (3). After the holidays we can expect the price to continue falling down.



As we can see at the H1 chart, wave (2) has taken the form of zigzag pattern. On the minor wave level we can see the formation of a bearish wedge pattern in wave 1. Most likely, the price will continue consolidating inside a narrow trading range during the next week.