Interesting pattern on USD/CHF points higher – Elliott wave analysis
|Hello traders,
On the weekly chart of USD/CHF, we can see that price was for the last five years making a sideways, and overlapping price activity; a triangle in B. This triangle can now be completed based on latest sharp recovery from the 0.9176 level, where a low was put into place. If that is the case, then be aware of a minimum three-wave recovery above the 1.023 zone for a higher degree wave C, in weeks/months to come.
That said, also let us be aware of temporary pullbacks, and first once can follow from the 1.0087 swing high.
USDCHF, weekly
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to E, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3, in some cases a leg E can be a triangle itself.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.
A running triangle in an uptrend:
Trade well,
The EW-Forecast team.
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