Analysis for July 12th, 2012
After completing zigzag
pattern in wave 2
, the price is forming descending waves inside the third one. We may assume that the pair is going to continue falling down in the nearest future. One can consider opening additional sell orders after the price forms an initial wave.
As we can see at the H1 chart, wave [C]
has been completed in the form of zigzag
pattern. On the minor wave level the price has formed a bearish impulse in wave (1)
. We may assume that yesterday the pair finished wave (2)
. In the near term, we can expect the price to continue moving downwards.
It looks like Euro is finishing wave 3
. In the near term, we can expect the price to be corrected for quite a long time. Considering that the second wave was quite fast, we can expect the fourth one to take much more time.
More detailed wave structure is shown on the H1 chart. We may assume that wave  of 3
is taking the form of diagonal triangle
pattern. There is a possibility that the third wave may be completely finished by the end of the week and then the market may start the correction.