AUDCHF Trade Opportunity; Triangle Pattern Signals More Upside

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Triangles are an excellent pattern to watch for. They are trend continuation patterns, always occurring before the final move in a larger term wave sequence. Here in AUDCHF we have a very clear triangle pattern, consisting of 5 subwaves, labeled abcde. Each of the five subwaves further breaks down into a 3 wave pattern, labeled (a)(b)(c). This is a perfect example of a pattern that is in-line with the Elliott Wave model. We are watching for a break of the green line at 0.7025 before entering, this level acts as our confirmation. Our invalidation level to watch for this bullish interpretation is the red line at 0.6830

This is why we love Elliott Wave: it provides us with clear ways to identify a pattern, a clear level to enter, as well as a clear level where we know we are wrong. Let us know if you would like to learn more about the Wave principle and how we use it to trade with the odds always in our favor.

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ملاحظة

The invalidation level was reached, but that does not mean we have to abandon this outlook. The wave principle always has a contingency plan.

Overall, the price action from April onwards is very corrective in nature; note the choppy, overlapping waves. We are pivoting over to a WXY count, known as a "complex correction" in Elliott wave terms. We are watching a level of Fibonacci confluence between 0.6785 and 0.6800.

This is another great benefit of the wave principle: no matter what the market decides to do, you will never be caught off-guard.