By Orbex
The current USDCHF formation indicates that at the end of November, the market completed the actionary wave y of the cycle degree, followed by a cycle intervening wave x.
Judging by the internal structure, the cycle intervening wave x can take the form of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. The sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ already look completed. In the near future, the market will decline in the final wave Ⓩ.
Thus, in the short term, we can observe a drop in the wave Ⓩ to the level of 0.893. At that level, wave x will be at 100% of wave y.
After the end of wave x, the bulls can update the previous high of 0.937. The intervening wave y marked this level.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
An alternative scenario hints at a price increase. According to this scenario, the formation of the cycle intervening wave x is done. In fact, it has the form of a triple zigzag of the primary degree.
After the end of the reactionary intervening wave x, we saw the price rise and the development of the cycle wave z. Perhaps this wave takes the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ.
In addition, it seems that an intermediate triple zigzag was completed within the wave Ⓦ and the intervening wave Ⓧ. This took the form of a triple zigzag (W)-(X)-(Y)-(X)-(Z).
Soon, the exchange rate may rise in an intermediate double zigzag (W)-(X)-(Y) to the level of 0.951, where cycle waves z and y will be equal.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
- Optimism surrounding the US-China summit in Beijing supported the markets May 15, 2026
- Gold Falls on US Inflation Concerns as Week Ends in Losses May 15, 2026
- The oil market may remain in a state of severe supply shortage until autumn May 14, 2026
- GBP/USD Under Policy Pressure: What Lies Ahead for the Prime Minister? May 14, 2026
- European stock markets declined amid rising concerns about an energy crisis May 13, 2026
- USD/JPY Continues to Climb Amid External and Domestic Pressures May 13, 2026
- You can change your emotions – but it’s a 2‑step process that takes some effort May 12, 2026
- The United States rejected Iran’s proposal for resolving the conflict. Oil prices surged again May 12, 2026
- EUR/USD on Edge: Middle East and China in Focus May 12, 2026
- The US stock indices continue to set new records. China’s exports showed a sharp increase May 11, 2026
