USD/CHF is presenting a textbook Elliott Wave count so far. I have marked on the chart the many ideal characteristics for this currency pair.
There is no long position to take for wave (v) quite yet. It is important to wait for evidence that wave (iv) is complete. The fact we have reached the previous base channel is one strong piece of evidence. Confirming price...
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...