ELLIOT WAVE VIEW: AUDCHF SETS TO FALL 400 PIPS IN SHORTER CYCLE
Hi Traders,
The AUDCHF daily chart shows that the decline from Dec 2018 high to Jan 2019 low took the shape of a textbook five-wave impulse in wave (a) in red.
.
The Elliott Wave theory states that a three-wave correction in the opposite direction follows every impulse. In AUDCHF’s case, wave (b) in red looks like a w-x-y double zigzag retracement.
.
Waves (a) and (b) are simple a-b-c zigzags, while wave (c) is still in progress but almost completed. If this count is correct, once wave (c) completes the 5-3 wave cycle the trend can be expected to resume in the direction of the impulsive sequence.
.
With regards to traditional technical analysis, price is currently rejecting a weekly resistance that lined up with 78.6 Fib ratio which suggests the high-probability reversal is expected from the near current level.
.
One of the guidelines for EW zigzag formation is equality of wave A and C, in this case, wave (a) will equals wave (c) around 0.67489 area. So targets below 0.68298 are highly probable for wave (c).
.
Thanks for reading!
Veejahbee.
The AUDCHF daily chart shows that the decline from Dec 2018 high to Jan 2019 low took the shape of a textbook five-wave impulse in wave (a) in red.
.
The Elliott Wave theory states that a three-wave correction in the opposite direction follows every impulse. In AUDCHF’s case, wave (b) in red looks like a w-x-y double zigzag retracement.
.
Waves (a) and (b) are simple a-b-c zigzags, while wave (c) is still in progress but almost completed. If this count is correct, once wave (c) completes the 5-3 wave cycle the trend can be expected to resume in the direction of the impulsive sequence.
.
With regards to traditional technical analysis, price is currently rejecting a weekly resistance that lined up with 78.6 Fib ratio which suggests the high-probability reversal is expected from the near current level.
.
One of the guidelines for EW zigzag formation is equality of wave A and C, in this case, wave (a) will equals wave (c) around 0.67489 area. So targets below 0.68298 are highly probable for wave (c).
.
Thanks for reading!
Veejahbee.