USD/CHF Elliott Wave forecast: Sideways triangle

Zorrays Junaid Alchemy Markets

Executive summary

Trend bias: USD/CHF appears to be carving a sideways triangle pattern that may lead to a bearish breakdown.
Key levels: Bearish below .8076.
Target zone: Wave ((v)) below .7829.

Current Elliott Wave analysis

The Elliott wave analysis for the USD/CHF daily chart illustrates a sideways consolidation underway from the July low. This consolidation appears to be wave ((iv)) of a 5-wave bearish impulse pattern.

Wave ((iv)) appears to be taking on the shape of a symmetrical triangle. After another down up sequence, then the pattern may be ripe for a bearish breakdown.

This pricing within the triangle should remain below .8076 to remain valid. On a print above .8076 resistance, then we’ll consider an alternate count that a motive wave is developing from the September low.

Bottom line

USD/CHF is likely carving a sideways triangle pattern that is bearish. After another down up sequence that holds below .8076 we are anticipating a bearish break to retest .7829.

In the unexpected rally above .8076, then we’ll consider the alternate counts.

Author

Zorrays Junaid

Alchemy Markets

Zorrays Junaid has extensive combined experience in the financial markets as a portfolio manager and trading coach. More recently, he is an Analyst with Alchemy Markets, and has contributed to DailyFX and Elliott Wave Forecast in the past.

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