USDCHF at a turning point – Elliott Wave Analysis
In the last couple of weeks we have been tracking two scenarios for USDCHF, a bearish impulse and a corrective decline from 0.9036. Well, last week we finally got some price action that we can work with.
The pair recovered in an impulsive manner from 0.8854 which suggests that the previous bearish retracement was just a correction in three legs with a triangle in wave B. With that said, we think that the market will continue higher, probably back to June’s highs, once a downward channel is taken out. A rally aback above 0.8940 will be a sign of a completed wave (ii).
Our trailing stop has been hit on USDCHF for a small loss, but we may try again with longs soon as a decline from the high still has a corrective look. In fact, in the current leg down from 0.9100, labeled as wave c), that the market is making overlaps within a wedge pattern that can be an ending diagonal. Nice support comes in at 0.9000 psychological level.
USDCHF 1h Elliott Wave Analysis