USDCHF Zigzag Could Print Fresh Highs

By Orbex

The current USDCHF formation hints at a double zigzag Ⓦ-Ⓧ-Ⓨ in cycle wave y. Currently, the last primary wave Ⓨ is under development.

Due to its complex internal structure, it will most likely take the form of a double combination (W)-(X)-(Y). If waves (W) and (X) have been completed already, then wave (Y) could provide a bullish opportunity.

Analysts expect the end of wave (Y) near 0.947. At that level, cycle wave y will be at 76.4% of wave w.

However, the primary wave Ⓧ may not be fully completed yet. In that case, probabilities suggest that it could take the formation of a double three (W)-(X)-(Y) pattern.

With two-thirds of the structure in wave (Y) completed, we could see prices move in wave C towards the 0.901 area. At that level, primary wave Ⓧ will be at 76.4% of wave Ⓦ.

By Orbex