Analysis for July 10th, 2012
It looks like New Zealand Dollar is making a reverse downwards. Wave 2
has been completed in the form of zigzag
pattern. Currently the price is forming initial bearish waves. In the nearest future the pair may continue falling down.
As we can see at the H1 chart, the correction was finished with wave [C] of 2
in the form of diagonal triangle
pattern. On the minor wave level the price has formed an initial descending impulse in wave (1)
. The local correction may be finished quite soon and then we can expect the pair to start forming a bearish wave (3)
Now it’s quite clear that wave (4)
has been finally completed in the form of zigzag
pattern. On the minor wave level the price continues moving downwards in wave 3
. The current chart structure indicates that Euro may continue falling down. The target is still at the level of 1.2000.
The price is forming the fourth wave inside wave 3
. The local correction may be finished within the next several hours. In the near term, we can expect the price to start moving downwards again while forming wave  of 3