HomeContributorsTechnical AnalysisUSD/CHF: The Final Leg of the Ending Diagonal is Under Development

USD/CHF: The Final Leg of the Ending Diagonal is Under Development

On the 1H timeframe for the USDCHF pair, we see the final part of the proposed large double zigzag consisting of cycle sub-waves w-x-y. This pattern looks fully completed, that is, the price decline in the cycle wave y, which is the primary standard zigzag, has 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 â’¶-â’·-â’¸ is being constructed.

Perhaps the first two sub-waves â’¶-â’· are fully completed, so growth is expected in the direction of the 1.0096 level, in the impulse â’¸, the last leg of which takes the form of an ending diagonal 1-2-3-4-5, as shown in the chart.

At that level, wave â’¸ will be at 123.6% of first impulse â’¶.

Alternatively, the cycle pattern may take a more complex form, that is, a triple zigzag w-x-y-x-z.

Thus, if this option is confirmed, we will see a decrease in the price and the construction of the final sub-wave z.

It is possible that the wave z will be at 123.6% of wave y and will complete its pattern near 0.931. And its first part, the primary sub-wave â’¶, may end at a minimum of 0.947.

An approximate scheme of possible future movement is shown on the chart.

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