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.
The current primary structure on USDCHF pair hints to a complex corrective pattern. With waves Ⓐ and Ⓑ having already completed we could now expect prices to unroll to the downside in an impulsive manner.
After the completion of intermediate wave (1), an intermediate correction (2) can be expected.
It is possible that this correction (2) takes the form of a minor zigzag А-В-С and completes its bullish course near 0.9895. That level is the 50% Fibonacci retracement of the intermediate wave (1).
Such a scenario would be followed by strong bearish momentum, breaking to fresh lows. The correction could, however, be weaker on the upside, reaching only the 38.2% Fibonacci, or even lower areas. That would make the bearish breakout move even stronger.
Looking at the charts a little closer provides an alternative scenario that can’t go missing. According to this formation, intermediate wave (1) has not yet been completed.
This impulse would consist of minor sub-waves 1-2-3-4-5 again. However, ...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.