USD/CHF, 2D chart. The last upward three-wave price movement could be labelled as wave ((W)) of a larger corrective structure. The following wave ((X)) is likely is taking the form of a double zigzag. In this case, we should keep an eye on the 0.618 retracement level as a potential target for the ongoing downward correction.
USD/CHF, Daily chart. As you can see, there’s a flat pattern, which supposed to be wave B. A bearish impulse for wave C is likely going to be continued, so we could have a new local low in the short term. However, if the price breaks 0.9207, there’ll be a green light for an alternate scenario.
! Alternative Scenario !
It’s also possible to have wave ((iv)) as a flat pattern, but this wave count will be in force only of the market goes through 0.9207.
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