Elliott Wave Analysis: EURUSD and USDCHF
On the 4h count of EURUSD we see price trading south following a completed zig-zag correction, that was in progress since the start of the year. Current reversal is strong and clearly impulsive, thus an important sign of a top in place, meaning a minimum three wave reversal to the downside may start to unfold but ideally that’s a start of an impulsive drop in wave five of a higher degree. Now, we see price trading in the first wave 1), probably in late stages, so let’s be aware of a correction that may pop up during the process in the next few sessions as wave 2), that may later find resistance around the previous swing low at the 1.0760 level.
On the updated chart of USDCHF, we see price undergoing a nice sharp and strong rally to the upside, probably as an indication for a low in place. If that is the case, then recent big three wave pattern to the downside is completed as a contra-trend move, therefore more gains may follow in days ahead. Now, we see price trading in the first wave 1) that may find a potential top in sessions ahead and make a minimum three wave reversal to the downside for wave two. Possible support can then be around 0.9900.
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