This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
USDCHF seems to be forming a bullish zigzag that consists of primary sub-waves Ⓐ-Ⓑ-Ⓒ.
The market has completed an impulse wave Ⓐ, which was followed by a horizontal contracting triangle in wave Ⓑ.
It seems that the pair has now begun to form the initial part of the final impulse Ⓒ.
Thus, in the short term, we can expect prices to extend up to 1.001, at which, Ⓒ will be at 61.8% of wave Ⓐ.
However, an alternative scenario is indicative of an incomplete correction Ⓑ.
It would appear to consist of intermediate sub-waves (A)-(B)-(C) and a standard zigzag pattern, where, currently, prices are structuring an impulse in wave (C).
Wave 4 looks fully complete at the time of writing. This is a signal for a bearish move in wave 5.
Thus, in the short term, we could see the pair decline near 0.946. At that level, wave Ⓑ will be at 61.8% of Ⓐ.Test your strategy on how the CHF will fare with Orbex - Open Your Account Now.
To keep reading this article, please navigate to: Orbex Forex Trading Blog.