USDCHF Trading In A Temporary Correction; More Upside Is Expected

Gregor Horvat

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, that seems to be in action since end of December of 2014. That said as we can see, pair completed a triangle correction in the connecting wave B and made a sharp reversal higher, above the sub-wave D swing. As such we now believe price may unfold a five-wave movement within the final wave C, before making a higher degree impulsive drop towards new lows. Ideally price will make a run towards the 1.0700/1.0750.

Now we see price going complex in sub-wave 4) or three.

USDCHF Daily Chart

USDCHF Daily Chart

Regarding the 4H view. USDCHF was in a strong uptrend in the last few months of 2016, so recent sideways price move since mid-December is just another correction or pause within uptrend. We see it as wave 4) that seems to be unfolding as a complex correction, with sub-wave C showing qualities of an ending diagonal. As we can see on the updated chart, current bearish intraday movement suggests price trading in final blue wave v of C, that will ideally find some support and a new turning point higher around the lower line of an ending diagonal.

A five wave move to the upside towards 1.0249 level would indicate higher levels to follow.

USDCHF 4 Hour Chart

USDCHF 4 Hour Chart

Source: www.ew-forecast.com

Comments

comments