Forex Trading Library

USDCHF Bearish Trend Begins Ending Diagonal

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Chart of USDCHF

The USDCHF pair most likely forms a triple zigzag pattern Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

The final primary wave Ⓩ can end in the form of a standard intermediate zigzag (A)-(B)-(C). Wave (A) is a 5-wave bearish impulse and wave (B) has a horizontal internal structure of a double three W-X-Y.

At the time of writing, the formation of the final intermediate wave (C) is taking place. Perhaps it will be at 76.4% of impulse (A), and will end near 0.872 in the form of an ending diagonal.

Chart of USDCHF

And what if the development of correction (B) continues? Let’s consider an alternative scenario, which can take the form of a triple three consisting of sub-waves W-X-Y-X-Z.

The minor sub-waves W-X-Y-X have been completed. It is necessary to wait for the development of the minor wave Z.

Probably, bulls will send prices to 0.943 which is the maximum of the wave Y.

Test your strategy on how the USDCHF will fare with Orbex

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