USDCHF Can Still Look Bearish Long-term – Elliott Wave Analysis

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USDCHF made a five-wave drop from the 1.024 area, and unfolded wave A) as part of a bigger three-wave decline; A)-B)-C). The overlapping price activity which followed can be a double zig-zag correction within a wave B), with price currently unfolding final leg Y. Potential resistance/turning point area for sub-wave c of Y of B) can be near the 1.0080-1.0150 region.

USDCHF, daily

On the 4h time frame of the USDCHF we can see that price is turning higher, now already at the upper side of a corrective channel with a strong and only one leg from 0.9840 low, so we think that drop from October high was just a corrective pullback within a higher degree wave b. As such, more upside towards 1.0080-1.0150 is expected; ideally in five waves before bears can come back in play.

USDCHF, 4h

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About Author

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!