EURUSD
EURUSD still trading in a consolidation. We are continue tracking a triangle pattern of a larger degree. This triangle should be in its final stages and we might see a push up even today on the FED rate decision. On the larger time frame, we are still expecting much lower levels on this pair in the weeks to come. ECB announced a possible addition to its QE program in March, so this might add to a further devaluation of Europe’s single currency. The current pattern should trace one more push up in the blue wave c-circled to complete the current counter trend pullback.
EURUSD, 1H
USDCHF
On the USDCHF pair, we are looking for a more complex structure in an ending diagonal in the wave C formation. Since we expect one more push up on EURUSD, the USDCHF should then move downward, because of its correlation.
USDCHF, 1H
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast. A small percentage of ending diagonals appear in the C wave position of A-B- C formations. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.
Ending Diagonal Pattern:
Share
