Analysis for May 8th, 2012
NZD/USD
The price continues forming wave
[3]. It looks like wave
(3) is almost completed. In the near term, we can expect the correction and then the start of wave
(5) of [3].
More detailed wave structure is shown on the H1 chart. We may assume that the price has completed wave
4 and started forming the fifth one. All these factors indicate that the pair will continue falling down.
EUR/USD
Over the last 24 hours the price has almost eliminated the gap, which took place during the market opening on Monday. There is a possibility that the pair may start moving downwards again. In the near term, we can expect the price to reach a new local minimum.
As we can see at the H1 chart, the price has formed two initial descending impulses. It looks like Euro is on the verge to start wave
[3]. The forecast of the price movement is still bearish. The target is at the level of 1.2800.