Elliott Wave Analysis: USDCHF Looking for A Reversal Higher
USDCHF was in a strong uptrend in the last few months of 2016, so recent sideways price move since mid-December is just another correction or pause within uptrend. We see it as wave 4) that seems to be unfolding as a complex correction, with sub-wave C showing qualities of an ending diagonal. As we can see on the updated chart, current bearish intraday movement suggests a drop down into final blue wave v of C, that will ideally find some support and a new turning point higher around the lower line of an ending diagonal.
A five wave move to the upside towards 1.0249 level would indicate higher levels to follow.
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns. They consist out of five waves, with each having three more sub-waves.
Basic Ending Diagonal:
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