USD/CHF: We expect a fall within the bearish impulse
In the long term, the USDCHF pair can build a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. Its final part, wave Ⓩ, is under development.
The primary wave Ⓩ may end in the form of a standard intermediate zigzag (A)-(B)-(C). Wave (A) is a 5-wave bearish impulse, wave (B) has a horizontal internal structure of a double three W-X-Y.
Thus, the formation of the final intermediate wave (C) can be expected in the near future. Its internal structure is shown by trend lines. Perhaps it will be at 76.4% of impulse (A), and will end near 0.872.
Let's consider a scenario where the development of correction (B) can be continued. In this view, it can take the form of a triple three consisting of sub-waves W-X-Y-X-Z.
The minor sub-waves W-X-Y-X have been completed. To complete the final bullish wave Z, which can take a zigzag shape, it is necessary that the minute impulse wave ⓒ be built.
Probably, the bulls will send the market to the level of 0.946. At that level, minor wave Z will be equal to wave Y.
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
