The current USDCHF structure suggests that a bullish zigzag is forming. The primary degree pattern consists of waves Ⓐ-Ⓑ-Ⓒ.
Wave Ⓐ completed in a 5-wave impulse, and wave Ⓑ in a simple zigzag (A)-(B)-(C).
Similar to wave Ⓐ, wave Ⓒ is expected to surge higher in a 5-wave move. The impulse could complete near wave Ⓐ’s high of 0.9896.
An alternative scenario suggests that a triple zigzag is forming on the downside. The cycle degree pattern consists of waves w-x-y-x-z.
Four parts of the complex pattern are complete. The most recent intervening wave x ended in a triangle formation with its completion having triggered a decline in wave z.
Wave z contains primary waves Ⓐ-Ⓑ-Ⓒ. With waves Ⓐ and Ⓑ having concluded their pattern, wave Ⓒ is expected to finalize the triple zigzag.
The 5-wave impulse in Ⓒ consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5). Wave (1) is fully complete, whereas wave (2) is expected to complete its course a tad higher.
Waves (3), (4), and (5) in wave Ⓒ of z, are forecast to reach a low of 0.917. The target would respect the tenancy of impulse waves Ⓐ and Ⓒ being equal.Test your strategy on how the CHF will fare with Orbex - Open Your Account Now.