This big correction could be in its final stages

April 19, 2016 08:42 AM
Elliott Wave Analysis: USD/CHF

The U.S dollar/Swiss franc (USD/CHF) currency pair is in a deep pullback since December of 2015 when pair found a high at 1.0327, which we think it's a temporary top since we see current big decline as corrective wave IV. Ideally this wave IV belongs to a big ending diagonal pattern that could resume up from an important trendline connected since start of May of 2015. We are waiting on impulsive bounce back above 0.97886 swing which would be an important evidence that wave IV is completed and that price is headed to higher levels.


USD/CHF, Daily

 

On the 4-hour chart, USD/CHF has turned sharply higher last week, clearly with impulsive price action away from 100% Fibonacci level of wave A) compared to wave C). We have seen a very strong turn back above black wave 4 swing that puts a low in place so we need to be aware of even more upside in days ahead, back to 0.9790 with minimum three waves.


USD/CHF, 4-hour

 

 

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/