Analysis for February 29th, 2012
The price continues forming diagonal triangle
pattern in wave  of C
, and may reach a new local maximum during the day. However, we shouldn’t expect the market to grow higher than the level of 0.8500. Besides, there is a possibility that this level may be a starting point of a reverse.
If we take a look at more detailed wave structure, which is shown on the H1 chart, we can see that wave A of (3)
has taken the form of wedge
pattern. After the local correction we can expect the price to start growing up in wave C
. In the future, the pair may start forming the fourth wave.
We may assume that the price is forming wave 5 of (C)
at the moment. Most likely, the bulls will reach the level of 1.3500 and move even a bit higher. However, right now there is a strong possibility that the price may make a reverse in a downward direction. Nevertheless, in order to start selling the pair, one should wait for a bearish impulse.
It looks like wave 4
has taken the form of double three
pattern. Local maximum hasn’t been broken yet, that’s why, theoretically, the correction may still continue for a while, as an alternative scenario. The main scenario for Wednesday suggests that the price continues forming the fifth wave.