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

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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