Wave Analysis 05.01.2012 (USD/CHF, EUR/USD)

Analysis for January 5^th, 2012

USD/CHF

It looks like the price is starting to grow up in wave [3]. The forecast of the price movement remains bullish. Most likely, the pair will reach a new local maximum within the next several days. The first target for the bulls is at the level of 0.9600.



After completing diagonal triangle pattern in wave C of (2), the price formed an initial rising impulse in wave 1. It looks like the local correction is taking place at the moment. In the near term, we can expect the price to complete wave 2 and start growing while forming the third one.

EUR/USD

After completing wave 2, the price started falling down in wave 3 of (3). Most likely, the pair will reach a new local minimum within the next several days. The forecast of the price movement is still bullish, the short-term target is at the level of 1.2500.



As we can see at the H1 chart, wave 2 took the form of a usual zigzag pattern. On the minor wave level we can see the formation of a descending impulse in wave [1]. The price may continue falling down during the day.