USDCHF is trading in a bigger, sideways pattern known as a Elliott wave triangle correction. We see three of the five needed waves unfolded, so leg d) can now be in play from the 0.9866 level with three of its own minor waves, which can later look for resistance and a bearish turn into wave e) at the 0.9978 level or maybe from the 1.000 psychological price. That said, we will have to wait more time before we may see a strong break to the upside.
USDCHF, 4h
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.
