Wave Analysis 19.03.2012 (NZD/USD, EUR/USD)

Analysis for March 19^th, 2012

NZD/USD

Just as we expected earlier, after completing an initial descending impulse, the price continued the correction. It looks like wave [2] is about to be finished very soon. Most likely, the price will start moving downwards while forming the third wave in the beginning of the week.



As we can see at the H1 chart, wave (5) has been completed in the form of divergent diagonal triangle pattern. Wave [2] is taking the form of a usual zigzag pattern. There is a possibility that the price may start forming a descending wave (1) in the nearest future.

EUR/USD

We may assume that the price has finished a descending wedge pattern in wave (1), the second wave also looks completed. Most likely, Euro will start falling down while forming wave (3) during the next several days, and may reach a new local minimum by the end of the week.



More detailed wave structure is shown on the H1 chart. Wave 1 of wedge pattern has taken the form of an extension. We can’t exclude a possibility that wave C inside the second wave may be already finished. In the near term, we can expect the price to move downwards in wave 1.