Elliott Wave Analysis: USDCHF Trading in An Impulse Of A Higher Degree; Wave 4 Is In Motion 


Gregor - Author BIO photoOn the Daily chart of USDCHF we are looking at a higher degree complex correction, a three wave A-B-C rise of wave IV, that seems to be in action since end of December of 2014. That said as we can see, pair completed a triangle correction in the connecting wave B and made a sharp reversal higher, above the sub-wave D swing. As such we now believe price may unfold a five-wave movement within the final wave C of Y), before making a higher degree impulsive drop towards new lows. Ideally price will make a run towards the 1.0700/1.0750.



USDCHF was in a strong uptrend in the last few months of 2016, so current sideways price move since mid-December is most-likely just another correction or pause within uptrend. We see it as wave 4) that can be making a triangle with wave E down yet to come, as current bounce from 1.0050 can be still only sub-wave D with resistance seen near 1.0300.



A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.

Basic Triangle Pattern:





By Gregor Horvat

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