Elliott Wave Analysis: USDCHF Trading Within a Big Complex

On the Daily chart of USDCHF, we are looking at a higher degree complex correction, a three wave A-B-C rise of wave IV, which seems to be in action since the end of December 2014. That said, we can see the pair recently completed a triangle correction in connecting wave B and made a sharp reversal higher, above the wave D swing. As such, we now believe price may unfold a five-wave development within the final wave C of Y), before making a higher degree impulsive drop towards new lows.

USDCHF, Daily

Regarding the lower time-frame view, we can see USDCHF is in a strong uptrend from 0.9550 where the pair found a support following Trump’s victory. We now see sharp waves without overlaps, so we can be experiencing an impulse that belongs to a bigger bullish trend. However, nothing moves in straight lines so the current slow price action above 1.0000 support is a corrective wave which can unfold as a probable double zig-zag consolidation with a support seen around the previous swing high of wave D at 0.9998 level.

USDCHF, 4h

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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