USDCHF Elliott Wave Forecast - Could Test 1.0000 By 2013 EndCurrencies / Forex Trading Sep 04, 2013 - 04:42 PM GMT
USDCHF: Sharp reversal in 2011 from 0.7000 area is impulsive leg, and we know that impulses show direction of a current trend. As such, we think that pair is now bullish for minimum three wave rise; A)-B)-C). In the last few months we have seen a slow and choppy price action in 0.8900-1.0000 range which now seems to be a contracting triangle placed in wave B). We can already count five waves within this pattern so traders must be aware for a push higher into wave C) later this year.
USDCHF Weekly Elliott Wave Analysis
On Daily Chart contracting triangle is now in final stages. We are tracking a wave E that may be looking for a support around 0.9050-0.9200 zone. An impulsive bullish reversal in price back to 0.9700 will put USD in bullish mode against Swiss franc for a push above parity.
USDCHF Daily Elliott Wave Anaysis
What is Triangle Elliott Wave Pattern?
A Triangle is a common 5 wave pattern which is labeled A-B-C-D-E. Triangle moves counter-trend. It is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
- Structure is 3-3-3-3-3
- Each subwave of a triangle is usually a zig-zag
- Wave E must end in the price territory of wave A
- One subwave of a triangle usually has a much more complex structure than others subwaves
- Aappears in wave four in an impulse, wave B in an A-B-C, wave X or wave Y in a double threes, wave X or wave Z in a triple threes
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Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.
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