Forex Trading Library

USDCHF Ending Diagonal Nears Completion

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Chart of USDCHF

In the long term, the USDCHF seems to be forming a triple zigzag pattern Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. Only its final part, the wave Ⓩ, has not yet ended.

The actionary leg Ⓩ is likely to end in the form of a standard intermediate zigzag (A)-(B)-(C). Wave (A) is a 5-wave bearish impulse, wave (B) has a horizontal internal structure of a double three W-X-Y.

Now 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

Let’s consider an alternative scenario in which an intermediate correction is still being formed. This could 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. In the near future, traders can expect the development of a minor wave Z, which could take the form of a zigzag.

There is a chance that prices will move to the level of 0.943.

Test your strategy on how the USDCHF will fare with Orbex

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