Nearing Resistance Per Wolfe Waves | $USD $CHF $XAU #forex

FX:USDCHF   U.S. Dollar / Swiss Franc

As the $USD continues to benefit from recent fundamental cues in Swiss referendum against propping up its central bank gold reserve, the pair has defined an advanced market geometry in Bill Wolfe's Wolfe Waves pattern:


This pattern works remarkably well with discreet projection of its 2-4 Line off of Point-3 to trace the course of an adverse excursion towards the definition of Point-5-prime, or off of Point-1 to define point-5-second - See dashed line off of Point-3 as a dynamic resistance against any price excursion above the 1-3 Line.

Another point of highest interest provided by another line projection is that of the Take-Profit Line. The TP Line is simply projected as an alignment to points 1 and 4 (dotted Line).

In my empirical experience, I would estimate that this geometry tends to define Point-5 -prime (2-4 Line projection off of Point-3) more often than Point-5 (1-3 Line validation), whereas Point-5-second has the lowest occurrence rate.


Note that point-5 of the Wolfe Waves pattern (WW) is ghosted, as it remains undefined as of this writing.

Similarly, in Elliott Wave terms, a larger-degree 1-2-3-4-5 bullish impulse is nearing completion of a 5th wave geometry (expecting a Ending Diagonal to possibly occur off of Point-3 of the distinct WW).


Independent of the geometry-based price projections, the predictive/forecasting model offers the following targets:

1 - TG-Hi = 0.98048 - 02 DEC 2014 - Low probability attainment; High-probability reversal


2 - TG-x = 0.99144 - 02 DEC 2014 - Extreme target (rarest; occurs in over-stretched markets)


Current direction remains bullish . However, analysis suggests a near-by reversal potential as defined above. Wolfe Waves pattern (WW) should remain the measure of Take-Profit along its 1-4 Line below.

Watch for significant R/S influences from WW's Point-3 @ 0.97408 and poin-4 @ 0.93589.

Worth exploring is the similar pattern interplay with $CHF's positive correlated metal, $XAU:

David Alcindor
Predictive Analysis & Forecasting
Denver, Colorado - USA

Twitter: @4xForecaster