Wave Analysis 22.11.2011 (USD/CHF, EUR/USD)

Analysis for November 22^nd, 2011

USD/CHF

It looks like the correction is taking place here, and soon it may be finished. There is a possibility that the market may reach a new local minimum during the day. In the future we can expect the price to start growing while forming the third wave.



We may assume that wave [2] is taking the form of double zigzag pattern with wave (Y) being formed inside it. In the near term, we can expect the price to continue moving downwards while forming a final bearish wave inside the current correction. In the future, we can expect the start of the third wave.

EUR/USD

It looks like Euro, before starting falling down, is going to test the upper border of the current range. If it rebounds from the border, the price will start moving downwards and form wave (3). The target for the bears is the level of 1.3100.



After the price had completed an initial wedge pattern in a downward direction, the correction started. We may assume that wave (2) is taking the form of double zigzag pattern with wave Y being formed inside it. During the day we can expect a slight corrective rising movement, but after that the price may continue falling down in wave (3).