(Click on image to enlarge)

In the long term, the USDCHF seems to be forming a triple zigzag pattern Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. Only its final part, the wave Ⓩ, has not yet ended.

The actionary leg Ⓩ is likely to end in the form of a standard intermediate zigzag (A)-(B)-(C). Wave (A) is a 5-wave bearish impulse, wave (B) has a horizontal internal structure of a double three W-X-Y.

Now the formation of the final intermediate wave (C) is taking place. Perhaps it will be at 76.4% of impulse (A), and will end near 0.872 in the form of an ending diagonal.

(Click on image to enlarge)

Let’s consider an alternative scenario in which an intermediate correction is still being formed. This could take the form of a triple three consisting of sub-waves W-X-Y-X-Z.

The minor sub-waves W-X-Y-X have been completed. In the near future, traders can expect the development of a minor wave Z, which could take the form of a zigzag.

There is a chance that prices will move to the level of 0.943.

More By This Author:

Intraday Analysis – USD Struggles To Bounce
Fed Hike, Then What?
NZDUSD: Intermediate Impulse (C) Pushes Prices Lower