The current USDCHF structure shows the formation of a bearish cycle impulse c, consisting of minor sub-waves 1-2-3-4-5.
Waves 1-2-3 are fully complete, whilst corrective wave 4 is under development. Judging by the internal structure, correction 4 takes the form of a bullish triple zigzag of a minute degree.
Once the intervening wave ⓧ has ended, prices could rise in the final actionary wave ⓩ to 0.898.
At that level, correction 4 will be at 50% of minor impulse 3.
An alternative scenario shows the minor correction has completed in the form of a double ⓦ-ⓧ-ⓨ zigzag.
Should prices continue to move lower, then we could see the formation of the final impulse 5, which will end the cycle wave c near 0.872.
At that level, minor wave 5 will be at the 61.8% Fibonacci extension of wave 3.Test your strategy on how the CHF will fare with Orbex - Open Your Account Now.