USD making a recovery?

March 24, 2017 09:39 AM
Elliott Wave Analysis: USD/CHF & USD/JPY

USD/CHF
The U.S. dollar/Swiss franc (USD/CHF) currency pair is making a recovery, but for now, it's seen to be in three waves only. So we think it's Wave 4, which may stop near 0.9960-1.0000 area, or near 38.2%, will expect a new leg down. From an Elliott Wave perspective, that's an incomplete five wave fall from a March 8 high, so we expect more weakness towards, 0.9800-0.9850 before bears may end.

USD/CHF, 1-hour

USD/JPY
The U.S. dollar/Japanese yen (USD/JPY) currency pair did not go far in the last few sessions, so our bias is unchanged; we still see a pair in a fourth wave correction that belongs to an ongoing downtrend. We are talking about an impulse from 115.50 on the hourly chart where wave five is missing, so we will stick with bears, for now, that can decline towards 110.00, before market direction may be ready for a change. Resistance for wave four is near 111.80-112.00, unless it's going to be a triangle then the upside is going to be even more limited.

USD/JPY, 1-hour

 

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/