The structure of the USDCHF pair shows the final part of a large double zigzag consisting of cycle sub-waves w-x-y.
It is possible that the price reduction in the intervening wave x, which represents the primary standard zigzag, has recently ended. Currently, the initial part of a new corrective trend is developing.
It is assumed that a standard 3-wave zigzag Ⓐ-Ⓑ-Ⓒ of the primary degree is being constructed.
The first two sub-waves Ⓐ-Ⓑ are probably fully completed, so growth towards 1.0128 in impulse Ⓒ is likely.
At that level, wave Ⓒ will be at 123.6% of impulse Ⓐ.
Alternatively, the cycle pattern could take a more complex form, that is, not a double, but a triple zigzag w-x-y-x-z.
Thus, the confirmation of this option will be the reduction of the price and the construction of the final sub-wave z.
Wave z will probably strive for equality with the previous actionary wave y. Therefore its end is possible near 0.917.
Test your strategy on how the USD will fare with Orbex – Open Your Account Now.