Elliott Wave Analysis: USDCHF Trading Within A New Bullish Run

Gregor Horvat Wavetraders

USDCHF has made a big pullback since end of 2015 that we see it as a corrective and temporary decline. Notice that falling price action was overlapping; thus it has evidence of a contra-trend movement so we suspect that downtrend is finished now, especially after we identified an ending diagonal in wave C-circled of a big wave IV. Ideally market is now making a new bullish turn up into wave V that should be made by three waves. If we are correct then current triangle represents wave B-circled that will send price up into wave C later this month. Decisive rise above the upper channel resistance line will confirm our bullish view.
On the other-hand break beneath 0.9444 swing would require a different outlook.

USDCHF, Daily

Regarding the lower time frames, we see USDCHF in a sharp rise for the last few days, currently with increasing bullish momentum since market found support at 0.9766 so it appears that wave three is already in progress, currently with sub-wave three headed up to 1.0000 psychological level based on shrot-term cycles. For long-term view, we see pair at start of a new bully phase which may continue as long as 0.9640 remains untouched.

USDCHF, 4H

Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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