Wave Analysis 13.07.2012 (NZD/USD, EUR/USD)

Analysis for July 13^th, 2012

NZD/USD

It looks like the price continues forming an initial descending impulse in wave (1). Earlier wave 2 was finished in the form of zigzag pattern. I’d like to remind that on the major wave level the price is forming a bearish diagonal triangle pattern. In the near term, we can expect the pair to continue falling down.



At the H1 chart the price is about to start forming an extension in wave (3). On the minor wave level the pair is forming the second wave. Most likely, the price will start moving downwards again inside wave 3 of (3).

EUR/USD

Euro is finishing wave 3, which lacks only one descending wave in order to be completed. There is a possibility that the price may start the correction in the nearest future.



It looks like wave [5] is taking the form of diagonal triangle pattern. Wave 3 may be formed on Friday. After that we can expect the market to start forming the fourth wave, which may take several days to complete.