U.S. Dollar/Swiss Franc (USDCHF) Forex Elliott Wave Technical Analysis

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USDCHF Day Chart Description

USDCHF Elliott Wave Analysis - Trading Lounge Day Chart

USDCHF Day Chart

USDCHF Elliott Wave Technical Analysis

• Function: Trend
• Mode: Corrective
• Structure: Orange Wave 2
• Position: Navy Blue Wave 1
• Next Higher Degree Direction: Orange Wave 3
• Details: Orange Wave 1 completed, Orange Wave 2 in progress.
• Wave Cancel Invalid Level: 1.88270

The USDCHF Elliott Wave Analysis for the day chart focuses on identifying the current trend and wave structure of the U.S. Dollar against the Swiss Franc. The primary function of this analysis is to understand the market's trend direction. Currently, the market is in a corrective mode, indicating a temporary pause or pullback within a larger trend.

The specific wave structure under analysis is Orange Wave 2, which follows the completion of Orange Wave 1. This suggests that the initial impulsive move (Orange Wave 1) has concluded, and the market is now undergoing a correction phase represented by Orange Wave 2.

The current position within the wave sequence is Navy Blue Wave 1. This means that the corrective phase (Orange Wave 2) is part of the first wave in a higher degree sequence, indicating the market is still in the early stages of a larger trend cycle.

Looking ahead, the next higher degree direction points towards Orange Wave 3. Once the corrective phase of Orange Wave 2 concludes, the market is expected to resume its previous trend with a new impulsive move, identified as Orange Wave 3. This upcoming wave will likely continue the broader trend with renewed momentum.

The details provided in the analysis note that Orange Wave 1 is considered complete, and the market is currently in the midst of Orange Wave 2. The wave cancel invalid level is set at 1.88270. This critical level acts as a threshold; if the market surpasses this point, the current wave structure would be invalidated, necessitating a re-evaluation and potential re-labeling of the wave counts.

In summary, the USDCHF day chart is currently in a corrective phase, with Orange Wave 2 in progress following the completion of Orange Wave 1. The analysis anticipates that Orange Wave 3 will begin once the current correction ends. The wave cancel invalid level is 1.88270, which is crucial for maintaining the validity of this Elliott Wave analysis. This analysis highlights the ongoing correction and the potential for a new impulsive move in the near future.

 

USDCHF 4-Hour Chart Description

USDCHF Elliott Wave Analysis - Trading Lounge 4-Hour Chart

USDCHF 4-Hour Chart

USDCHF Elliott Wave Technical Analysis

• Function: Trend
• Mode: Corrective
• Structure: Orange Wave 2
• Position: Navy Blue Wave 1
• Next Higher Degree Direction: Orange Wave 3
• Details: Orange Wave 1 completed, Orange Wave 2 in progress.
• Wave Cancel Invalid Level: 1.88270

The USDCHF Elliott Wave Analysis for the 4-hour chart provides an in-depth look at the current market trend. The analysis aims to identify and follow the market trend, which in this case, is in a corrective mode. This suggests a market retracement or consolidation phase rather than a strong directional move.

The current wave structure is Orange Wave 2, which follows the completion of Orange Wave 1. This indicates the market has completed the initial impulsive move (Orange Wave 1) and is now in a correction phase (Orange Wave 2).

The position within the wave sequence is Navy Blue Wave 1, indicating that the corrective wave (Orange Wave 2) is part of a larger wave pattern, specifically the first wave of a higher degree Navy Blue wave sequence.

Looking forward, the next higher degree direction points to Orange Wave 3. Once the current corrective phase (Orange Wave 2) concludes, the market is expected to begin a new impulsive move (Orange Wave 3), likely resuming the previous trend with renewed strength.

The details section confirms Orange Wave 1 is complete, and the market is currently in the corrective phase of Orange Wave 2. The wave cancel invalid level is set at 1.88270. If the market exceeds this level, the current wave structure would be invalidated, requiring a reassessment and potential re-labeling of the wave counts.

In summary, the USDCHF is in a corrective phase on the 4-hour chart, with Orange Wave 2 in progress following the completion of Orange Wave 1. The analysis indicates that Orange Wave 3 will start once the current correction ends. The wave cancel invalid level is 1.88270, a crucial point for maintaining this Elliott Wave analysis's validity. This analysis highlights the ongoing corrective phase and the potential for a new impulsive move shortly.

 

Technical Analyst : Malik Awais

Source : Tradinglounge.com get trial here!