Wave Analysis 01.08.2012 (NZD/USD, EUR/USD)

Analysis for August 1^st, 2012

NZD/USD

We may assume that the price is finishing wave 2 in the form of zigzag pattern. On the minor wave level the pair is forming an impulse inside wave [C]. Earlier the price completed wave [B] in the form of flat pattern. In the future we can expect the pair to make a reverse and start forming an initial descending impulse.



More detailed wave structure is shown on the H1 chart. After completing wave (4), the market is forming the fifth one. During the next several days we can expect the price to make a reverse and start falling down inside wave 3.

EUR/USD

It looks like Euro continues forming the fourth wave, the correction may take the form of zigzag pattern. Later we can expect the price to start moving downwards again while forming a bearish wave 5.



As we can see at the H1 chart, after finishing wave [3] the price completed an initial ascending impulse, which may be wave (A). At the moment the local correction is taking place. Most likely, in the nearest future the price will start moving downwards inside wave C of (B).