Elliot Wave Analysis for EURCHF
EURCHF is the currency pair between the Euro Zone and Switzerland. According to the Bank of International Settlements, the distribution pair holds 37,3% out of 200% of the global foreign exchange market turnover and simultaneously is considered a Major pair, among the other currency pairs consisting of the U.S dollar, Australian dollar, Canadian dollar, and the British pound.
The currency pair now is traded at 1,0100 points, its all-time high was at 1,81457 in March 1993, and its all-time low was at the 0,96513 points in January 2015.
Monthly Range: Completing wave V
Observing the monthly trading chart (log scale), the main trend is downward, and so far, the 3 Cycle waves, I, II, and III, have been completed. Against 1,00683 in August 2011, the pair started a bear market rally to construct the first leg of the IV Cycle wave. The second leg as of ((B)) Primary of the IV Cycle wave broke the end of the III Cycle wave, so the option of the IV Cycle was an expanded flat pattern, due to its ((A)) and ((B)), or a running flat or triangle. The ((C)) Primary wave couldn’t exceed the end of the ((A)) of the same-degree wave, therefore the option of the expanded flat was canceled.
Against 1,20052 in a 3-wave sequence mode completed the ((D)) Primary wave at 0,99718 points. Hence, the only option left was a running triangle corrective pattern. A multi-relationship among the((D)) and ((C)) for predicting the final ((E)) Primary wave of the IV Cycle running triangle wave, according to the Elliot Wave Theory’s guideline is that every consecutive and every of the same direction wave within a triangle might have a 61,8% multiple.
Weekly Range: Higher in wave ((E))
Getting closer to the weekly trading chart (log scale), we can see the subdivision of the ((D)) and ((E)) Primary as of an (A) – (B) – (C) zig-zag – 5-3-5 structure – Intermediate waves pattern
Daily Range: Higher in wave 3
The rally against the end of ((E)) Primary of the IV Cycle wave at 1.115 points, as shown on the daily trading chart (log scale), was watching as wave (1) of ((1)) of V, so now we expect a bearish wave (3), we expect the pair to do sell-off in wave V, which targeting 0.90 CHF.