Analysis for July 4th, 2012
We may assume that the price is forming diagonal triangle
pattern with the second wave inside it. It looks like an ascending zigzag
pattern may be completed in the nearest future. We can’t exclude a possibility that during this week the pair may make a reverse and start falling down inside the third wave.
If we take a look at more detailed wave structure, which is shown on the H1 chart, we can see that the price is forming diagonal triangle
pattern in wave [C]
. The current wave structure implies that wave 2
has already been finished and the price may start moving downwards. The short-term target is the level of 0.7800.
It looks like the market is in the very beginning of the third wave. Euro may continue falling down after the local correction is finished. The target for the bears for the next several days is the level of 1.2000.
More detailed wave structure is shown on the H1 chart. After completing wave 2
in the form of zigzag
pattern, the price formed an initial impulse in wave 
. Currently the pair is being corrected inside the second wave. In the near term, we can expect the price to start moving downwards while forming wave