By Orbex

The current USDCHF structure shows a completed cycle degree correction in wave x which is followed by a bullish zigzag consisting of primary sub-waves Ⓐ, Ⓑ, Ⓒ.

Wave Ⓐ,  which is still under development, consists of intermediate waves (1)-(2)-(3)-(4)-(5). At the time of writing, all but the corrective waves (4) and (5) haven’t completed.

Wave (4) can see an end near 0.9650, where the minor degree correction wave will be at the 50% of bullish impulse (3).

This could continue with the full completion in wave (5) above 0.9902, which is the previous high reached by impulse wave (3).

We can see the current decline though also as part of a deeper correction. This would suggest that wave (5) is completed, and the correction currently seen could be that of the bearish corrective wave Ⓑ , and in a complex form; (W)-(X)-(Y).

This correction could end near the 0.945 level, where the primary correction Ⓑ will have reached the 61.8% Fibonacci retracement of impulse wave Ⓐ. This is often seen in corrections of this type.

By Orbex