Wave Analysis 21.08.2012 (NZD/USD, EUR/USD)

Analysis for August 21^st, 2012

NZD/USD

We may assume that after completing an initial impulse inside wave (1), the price started forming wave (2). The local correction may be finished in the nearest future. Later we can expect the pair to continue falling down inside wave (3).



More detailed wave structure is shown on the H1 chart. As we can see, the price is forming zigzag pattern inside wave (2). On the minor wave level the pair is finishing wave C. Most likely, the correction will be finished in the nearest future.

EUR/USD

The main scenario implies that wave [4] was completed in the form of zigzag pattern. On the minor wave level the market has formed a descending impulse inside wave (1). At the moment the local correction is taking place, which may be finished very soon. In the near term, we can expect the price to start falling down inside (3).



As we can see at the H1 chart, wave (2) is becoming more and more complicated. Wave B has been completed in the form of horizontal triangle pattern. There is a possibility that Euro may start falling down and form wave 1 in the nearest future.