Wave Analysis 27.12.2011 (USD/CHF, EUR/USD)

Analysis for December 27^th, 2011

USD/CHF

It looks like that Franc is in the very beginning of rising wave [3]. The forecast of the price movement is still bullish. Most likely, the market will continue moving inside the current trend after the New Year’s holidays.



Despite the fact that it took the price too much time to form the fourth wave, the scenario including wedge pattern still remains in effect. There is a possibility that the price may growing up slowly toward the local maximum. After the market finishes wave (1), the correction may take place.

EUR/USD

The closer the New Year’s holidays are, the narrower the trading range, in which Euro has been consolidating for the last several days, is. Most likely, the market is about to start forming the descending third wave. It looks like the longest part of this impulse is going to be formed after the New Year, in 2012.



The chart structure, which includes the descending wedge pattern, remains in effect, despite the fact that the fourth wave is still being formed. We shouldn’t expect the price movement to change much during the last several days of the year. There is a possibility that the market may complete wave 1 and the local correction will start.