We have been seeing the US Dollar weakens since the start of this year. USDCHF has been falling from the high of 1.0300 to the recent low of 0.9500 area. Are we going to see a potential reversal soon?
Based on the wave analysis, the recent price development seems to be showing signs that we can expect a move to the upside soon - either as a deeper retracement, or as a reversal to the upside.
1) Price has now reached the 123.6% fibonacci extension level from the 1.0300 high, potentially completed the WXY structure.
2) On a smaller degree, price is currently very near to hitting the 161.8% fibonacci extension level from the 1.0170 high, potentially completing a small degree WXY structure.
3) We are also seeing the potential of an ending diagonal forming with the 5th wave down; coupling with a divergence in RSI.
These few factors gave me the reasons to believe that we might be seeing some buying pressure on USDCHF soon.
P.S. This does not necessarily mean I am buying up USDCHF. Have a plan and trade your plan.
Based on the wave analysis, the recent price development seems to be showing signs that we can expect a move to the upside soon - either as a deeper retracement, or as a reversal to the upside.
1) Price has now reached the 123.6% fibonacci extension level from the 1.0300 high, potentially completed the WXY structure.
2) On a smaller degree, price is currently very near to hitting the 161.8% fibonacci extension level from the 1.0170 high, potentially completing a small degree WXY structure.
3) We are also seeing the potential of an ending diagonal forming with the 5th wave down; coupling with a divergence in RSI.
These few factors gave me the reasons to believe that we might be seeing some buying pressure on USDCHF soon.
P.S. This does not necessarily mean I am buying up USDCHF. Have a plan and trade your plan.