In our recent article about USDCHF, we explained incomplete bearish sequence in USDCHF since October 2022 and December 2016 highs and explained that bounces should fail in 3, 7 or 11 swings for extension lower. Pair found sellers after three waves in the first blue box area and reacted lower to allow any sellers to eliminate risk on their shorts. However, pair failed to break below 05.04.2023 low and has now broken above the previous peak within the blue box which was reached on 05.18.2023. Let’s take a look at the current structure and the next extreme in today’s article.
USD/CHF 4 hour Elliott Wave chart – 05.24.2023
Chart above shows USDCHF cycle from 03.02.2023 ended as an impulsive Elliott wave structure and pair is now bouncing to correct the decline from 03.02.2023 peak at 0.94404. Pair completed a cycle from 05.04.2023 low (0.8819) at 05.18.2023 high (0.9062) and turned lower after sellers appeared in the blue box area between 0.9023 – 0.9120. Pair dropped from 0.9062 to 0.8940 (05.22.2023) which allowed sellers from blue box to eliminate risk on their shorts. However, it failed to get more downward momentum and didn’t manage to break below 05.04.2023 low. Instead the pair continue higher and it has now broken above 05.18.2023 (0.9062) high and has created yet another short-term incomplete sequence to the upside.
Near term, expect some more upside toward 0.9087 – 0.9123 to complete the cycle from 05.22.2023 low i.e. black (( x )) before it pulls back to correct this cycle and turns higher again toward 0.9180 – 0.9331 to complete the larger double three structure since 05.04.2023 low. Area between 0.9180 – 0.9331 highlights the next extreme and the blue box area where we expect sellers to appear to resume the decline toward the double extreme area on the weekly chart between 0.8563 – 0.8189 or produce a reaction lower in three waves at least to allow sellers to get into a risk free position. like it did from the previous blue box area between 0.9023 – 0.9120.
FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.