USDCHF made some restoration in previous few weeks, however to date it’s nonetheless shifting in three waves up from the lows, suggesting this may very well be a extra advanced wave 4 rally — a counter-trend transfer nonetheless inside the ongoing ending diagonal. For now we will see some good reversal down, after solely a.b.c legs from the low, with present leg eyeing the 0.7924 low. If that degree is breached, it might point out a drop in direction of new lows. So, within the subsequent few days, we must always get readability on whether or not the bears will stay in management.
It’s additionally value watching RSI, which is popping down properly from the overbought territory much like previous cycles since Could, when the pair repeatedly turned decrease.
Additionally remember the fact that USDCHF may additionally transfer decrease even we now have any sudden a risk-off mode, because the Swiss franc tends to behave as a secure haven in instances of uncertainty. Nonetheless, if we see a sudden and really robust franc within the weeks forward, as indicated by Elliott wave sample, then the Swiss Nationwide Financial institution may step in and take motion to forestall it from rising too far, as they already expressed some concern about that in current statements.
So when/if new low is seen on USDCHF, then be prepared for a bullish flip later this 12 months, or early in 2026. Ending diagonals are often called reversal patterns.
Grega
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