Analysis for May 16th, 2012
The descending movement of the pair is becoming more and more significant. It looks like the price is forming an extended wave (3)
. On the minor wave level we can see the formation of wave 3
. In the nearest future we can expect the price to continue falling down.
More detailed wave structure is shown on the H1 chart. The price is forming a bearish wave  of 3
. Currently the movement structure indicates that the pair may continue moving downwards. The target for the next several days is the level of 0.7400.
Euro is moving downwards in wave (3)
faster and faster. On the minor wave level the price is forming wave 3, and we can assume that the bears aren’t going to stop so far. There is a possibility that the pair may reach the level of 1.2500 within the next several days.
More detailed wave structure is shown on the H1 chart. As we can see, the price is finishing the third wave inside wave 3
. In the near term, we can expect the correction. After the pair completes the fourth wave, which is likely to be a short one, the price will continue falling down in wave  of 3