USDCHF climbed to 1.0328 in late-November, 2015, but lost almost 9 figures by the beginning of May, 2016. Nevertheless, the pair managed to find support at 0.9444 and has been rising since. With the exchange rate currently hovering around 0.9830, it is time to take a look at the charts and see what the Elliott Wave Principle has to say about USDCHF’s future prospects.
The daily chart shows all that has happened with USDCHF, since the crash in January, 2015. There is a five-wave impulse from 0.8319 to 1.0128, labeled as wave (A). The rest of the price action look like a running flat in wave (B), where wave C is an ending diagonal, whose upper line has already been broken. It appears the daily chart of USDCHF shows a complete 5-3 wave cycle. According to the theory, the rate could be expected to continue in the direction of the impulsive sequence. So, if this is the correct count, as long as the bottom at 0.9444 holds, USDCHF is under bullish jurisdiction. In the long term, the trend is supposed to exceed 1.0330 in wave (C) up.
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