U.S. Dollar / Swiss Franc (USDCHF) Day Chart
USDCHF Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Orange Wave 2
Position: Navy Blue Wave 3
Direction Next Higher Degree: Orange Wave 3
Wave Cancel Invalid Level: 0.91975
Analysis Overview
The USDCHF Elliott Wave Analysis on the daily chart signals a counter-trend movement, indicating the market remains in a corrective phase. The current wave structure places USDCHF within Orange Wave 2, forming part of a larger Navy Blue Wave 3. This suggests an intermediate correction before the overall bullish trend resumes.
Wave Structure & Market Outlook
- Orange Wave 1 has completed, marking a transition to Orange Wave 2, which is currently unfolding.
- Orange Wave 2 is anticipated to exhibit corrective behavior, likely moving sideways or slightly higher before the next impulsive wave begins.
- The completion of Orange Wave 2 will be a key inflection point, as it will likely indicate the start of Orange Wave 3, aligning with the broader bullish market structure.
Key Technical Levels
- Wave Cancellation Level: 0.91975 – A price break above this level will invalidate the current wave count, necessitating a market structure reassessment.
- This level acts as a critical resistance zone; a breach could signify a shift in trend dynamics or the emergence of a new Elliott Wave formation.
Conclusion
USDCHF remains in a corrective phase, with Orange Wave 2 in progress following the completion of Orange Wave 1. This movement remains within the broader Navy Blue Wave 3 structure, with Orange Wave 3 anticipated as the next significant bullish move.
Traders should closely monitor the completion of Orange Wave 2, as it will provide key insights into the timing and direction of the next major wave movement. Understanding Elliott Wave structures is crucial for forecasting potential market trends and developing strategic trading plans.
U.S. Dollar / Swiss Franc (USDCHF) 4-Hour Chart
USDCHF Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Orange Wave 2
Position: Navy Blue Wave 3
Direction Next Higher Degree: Orange Wave 3
Wave Cancel Invalid Level: 0.91975
Analysis Overview
The USDCHF Elliott Wave Analysis on the 4-hour chart confirms a counter-trend correction, showing that the market remains in a corrective mode. The wave structure places USDCHF in Orange Wave 2, which forms a component of the broader Navy Blue Wave 3. This suggests that the market is undergoing an intermediate correction before returning to its larger uptrend.
Wave Structure & Market Outlook
- Orange Wave 1 appears to have completed, transitioning the market into Orange Wave 2, which is currently developing.
- Orange Wave 2 is expected to display typical corrective characteristics, possibly moving sideways or slightly upward before the initiation of Orange Wave 3.
- The completion of Orange Wave 2 will be crucial, as it may signal the beginning of Orange Wave 3, aligning with the overall bullish Elliott Wave structure.
Key Technical Levels
- Wave Cancellation Level: 0.91975 – A move above this threshold would invalidate the current wave count, requiring a revised market outlook.
- This level represents a major resistance point; a breakout could indicate a shift in trend direction or a new wave pattern development.
Conclusion
USDCHF is currently navigating a corrective phase, with Orange Wave 2 in motion following the completion of Orange Wave 1. This movement is still part of the Navy Blue Wave 3 structure, with Orange Wave 3 anticipated as the next major bullish development.
Traders should carefully observe the finalization of Orange Wave 2, as it will offer essential insights into the timing and direction of the next higher-degree wave. Mastering Elliott Wave Theory is key for forecasting market trends and executing effective trading strategies.
Technical Analyst: Malik Awais
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