Elliott Wave Analysis: German DAX and USDCHF
A sharp turn up on DAX from 10020 area was clearly an impulsive price move, based on personality and structure which confirms a completed correction from August highs. As such this impulse was labeled as wave 1 or A, then followed by a minor complex correction know as a double zig-zag in wave 2/B that found a support the past week at 10400 level. Current strong uptrend is now wave 3/C which is now trading around the 11200 area, and could in days ahead reach even more upside.
At the moment we see price trading in sub-wave v of 3/C, that could see a possible reversal zone around the 261.8 Fibonacci ratio.
German DAX, 4H
USDCHF is in a strong uptrend from 0.9550 where pair found a support following Trump’s victory. We now see sharp waves without overlaps, so we can be experiencing an impulse that belongs to a bigger bullish trend. However, as we know nothing moves in straight lines so recent slow price action above 1.0000 support was a corrective wave which unfolded as a double zig-zag consolidation with support kicking in at the 1.0021 level, from where a nice sharp reversal towards the extreme of sub-wave X had followed. As such this correction should now be completed and a new five wave structure may be in motion towards higher levels.
At the moment we see price trading in sub-wave 2) with a possible reversal region around the 50.0 or 61.8 Fibonacci ratio. Invalidation level is at 1.0018 level – as long it holds we are looking higher.
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