Analysis for July 16th, 2012
We may assume that the price, after completing zigzag
pattern in wave 2
, started forming an initial descending impulse. On the minor wave level the pair is forming wave (2)
. In the near term, the local correction may be finished and the price may start moving downwards while forming the third wave.
More detailed wave structure is shown on the H1 chart. An impulse in wave (2)
turned out to be much closer to wave 4
(if compared to wave 2
). At the moment the price is forming zigzag
pattern in wave (2)
. We can expect the pair to start falling down inside wave (3)
during the next several days.
It looks like the price started the correction last Friday, wave 4
may take several more days to complete. After that we can expect Euro to continue moving downwards inside a bearish wave 5 of (5)
As we can see at the H1 chart, wave 3
has been completed with diagonal triangle
pattern inside the fifth wave. Currently the price is forming wave 4
, which may take the form of zigzag
pattern. In the near term, we can expect the price to continue the correction.