USDCHF Could Turn Bullish In The Next 24 Hours

By: Gregor Horvat | Tue, Nov 19, 2013
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USDCHF looks interesting here; we see an overlapping price action contained by contracting trendlines that looks like an ending diagonal in wave C) position. As you know, in ending diagonals wave 3 must not be the shortest, so wave 5 should not go beyond 0.9045 because wave 3 is already shorter than wave 1. Generally speaking, the price action is very slow and choppy, which is very common in late stages of any trend, so we think that sooner or later USD will turn bullish.

Ending diagonal
Larger Image - Ending diagonal

An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final "C" wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

ew-forecast diagonal

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple and how to label and track unfolding patterns in real time.  His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.

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