Elliott Wave Analysis: Triangle On USD/CHF Is Pointing Higher

USD/CHF has made a big pullback since end of 2015 that we see it as a corrective and temporary decline. Notice that falling price action was overlapping; thus it has evidence of a contra-trend movement so we suspect that downtrend is finished now, especially after we identified an ending diagonal in wave C-circled of a big wave IV.

Ideally, the market is now making a new bullish turn up into wave V that should be made by three waves. If we are correct, then current triangle represents wave B-circled that will send price up into wave C later this month. Decisive rise above the upper channel resistance line will confirm our bullish view.

On the other-hand, a break beneath 0.9444 swing would require a different outlook.

USD/CHF Daily

USD/CHF Daily Chart

A triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature.

Triangles move within two channel lines drawn from waves A to C, and from waves B to D.

A triangle is either contracting or expanding depending on whether the channel lines are converging or expanding.

Triangles are overlapping five wave affairs that subpide into 3-3-3-3-3.

Basic Triangle Patterns:

Basic Triangle Patterns Chart

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