USD/CAD keeps trading lower; New bullish cycle expected in EUR/CHF

August 23, 2017 09:32 AM
Elliott Wave Analysis: USD/CAD & EUR/CHF

The U.S. dollar/Canadian dollar (USD/CAD) currency pair moved lower since last week with an overlapping price action but that's fine as long as the move is made by five legs, as in our case, and this can then be seen as a leading diagonal. It's a motive wave that moves in the direction of a larger trend, so we expect that this larger "bearish" trend will resume after a three wave bounce. Ideally, it's Wave 2 already in play with resistance seen at 1.2650/1.2670. We will expect a bearish continuation as long as market trades below 1.2776.

USD/CAD, 1 hour

The euro/Swiss franc (EUR/CHF) currency pair is in a slow, probably in a corrective phase for the last three weeks that we see as a triangle in Wave 4. It's a five wave sideways price action in a contracting range that is expected to send prices back to the highs after completed Wave "e", which is still a missing part of this structure. Ideally market will rise higher into Wave 5 towards 1.16/1.17 area.

EUR/CHF, daily

Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.

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/