Analysis for May 17th, 2012
New Zealand Dollar is still moving inside a very strong bearish trend. The price is forming a descending wave (3)
with the third wave inside it. All these factors indicate that the pair will continue moving downwards. The target of wave (3)
is the level of 1.7300.
As we can see at the H1 chart, the price is forming wave (4)
. The correction is becoming more horizontal, thus indicating that the price may start falling down again. Today I’ve opened a short-term sell order.
Euro has slowed down a bit, but the price may start falling down again in wave 3
on Thursday. Take Profits on 2 out of my 6 sell orders are placed at the end of the third wave. The short-term target is at the level of 1.2550.
More detailed wave structure is shown on the H1 chart. The price is forming wave 3
with the fourth wave inside it. The local correction may be finished today and then the price may start moving downwards again in wave  of 3.