Approaching 10-Year Trend Channel In a Wedge Pattern

The EURCHF is approaching interesting levels in an interesting manner. It approaches trend line resistance of the downside trend, which started in 2007. This trend is depicted in light blue in our chart on this page and runs currently around the 1.17 level. Interestingly it seems to approach this trend in a wedge pattern. The waves within the wedge subdivide into 3-wave zigzags. Our short term EURCHF forecast is a drop at least into the 1.138 area.

Trade active:

May see another spike to the upside before diagonal is complete. Got a S/L at 1.18, which invalidates the wedge. Reaching that level means that something else plays out.

Trade closed: target reached:

Please refer to the updated EURCHF idea from January 8th 2018