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The current USDCHF structure resembles a bullish zigzag. The corrective pattern consists of primary waves Ⓐ-Ⓑ-Ⓒ.
Wave Ⓐ was completed in an impulsive manner, whereas wave Ⓑ ended in a zigzag. Wave Ⓑ consists of intermediate sub-waves (A)-(B)-(C). At the time of writing, wave Ⓒ is under development.
As part of the correction, we expect a decline in wave (2) near 0.9460. This is the support formed by minor wave A.
Once the 3-wave pattern is complete, we can expect prices to move in wave (3). However, the final Ⓒ wave could complete near 1.010. The target would respect the tenancy of impulse waves Ⓐ and Ⓒ being equal. An alternative view suggests that primary wave Ⓑ could take longer to complete.
In this case, we could see a decline in wave (C) near 0.9350. At that level, wave Ⓑ will be at 76.4% of wave Ⓐ. Often, corrective waves retrace 76.4% to 78.6% of their first wave, which makes the 0.9350 a good target.
Once intermediate wave (C) ends its course, we can expect prices to start movin...
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