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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

usdchf-d

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

usdchf-4