GBPCHF is currently sitting on weekly support and we have RSI turning up from its previously oversold conditions. On the lower timeframes we have a falling wedge and an inverse head and shoulders patterns that has broken out. See below for lower-timeframe charts.
This video breakdown covers the USDCHF and targets the next 5 wave impulsive wave.
- Outlining larger price action structures
- Elliott Waves simplified
- Using multiple confluences to determine entry, stops, and targets
We have a completed 5 wave impulse to the highs of 76.250. Note the running flat that comprises the Wave 2 correction.
We also have a head and shoulders pattern, and I am targeting the C wave termination which may also conclude the ABC corrective wave on AUDJPY.
There is symmetry at 74.800 between the A and C waves, which also happens to coincide with...
One possible - and likely - interpretation of the current shorter-term wave count on EURJPY is that we have clearly completed a 5 wave decline followed by a classic ABC Elliott Flat correction.
The question is - what next? I am anticipating at minimum a return to the original lows at the 121.000 handle, with the possibility that there will be a fresh 5 wave...
This Elliott Wave contracting triangle has been playing out for the last few years. It is now very nearly the time to take advantage of this structure.
This is a longer-term structural play. I will personally be looking to build core positions along the way and to trade against them as we enter into new corrective models.
These opportunities do not come around...