Elliott wave Analysis: USDCHF Breaking Lower, while EURUSD and EURAUD Heading Up
We can see some bullish momentum on EURUSD coming in this week, away from 1.2200 area while USD index is moving south and causing dollar weakness on most of the dollar pairs. We see USDCHF turning south after recent minor corrective move which we labeled it as wave two yesterday, so ideally that’s now wave three in play after breaking out of an upward channel which means there can be a bearish continuation in the cards now, down to Feb 01 levels.
As said, EURUSD is picking up, ideally headed up to 1.2400 near-term projection which can be part of a new bullish cycle. What we like about euro in general is that it may have a positive impact on EURAUD which clearly made only three-wave drop and a possible ending diagonal in wave c) of four.
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