Tue, Jan 31, 2023 @ 23:26 GMT
HomeContributorsTechnical AnalysisUSD/CHF: A Bullish Primary Zigzag May Start a New Trend

USD/CHF: A Bullish Primary Zigzag May Start a New Trend

The structure of the USDCHF currency shows the final part of a large double zigzag consisting of cycle sub-waves w-x-y. This pattern looks fully completed.

It is possible that the price reduction in the intervening wave x, which represents the primary standard zigzag, has recently come to an end. Currently, there is a development of the initial part of a new corrective trend.

It is assumed that a standard 3-wave zigzag Ⓐ-Ⓑ-Ⓒ of the primary degree is being constructed.

The first two sub-waves Ⓐ-Ⓑ are probably fully completed, so growth in impulse Ⓒ is expected, as shown on the chart, towards 1.0128.

At that level, wave Ⓒ will be at 123.6% of impulse Ⓐ.

Alternatively, the cycle pattern may take a more complex form, that is, not a double, but a triple zigzag w-x-y-x-z.

Thus, the confirmation of this option will be the reduction of the price and the construction of the final sub-wave z.

Wave z will probably strive for equality with the previous actionary wave y, and therefore its end is possible near 0.917.

The probability of achieving this coefficient is high.

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