On the 1H timeframe for the USDCHF pair, we see the final part of the proposed large double zigzag consisting of cycle sub-waves w-x-y. This pattern looks fully completed, that is, the price decline in the cycle wave y, which is the primary standard zigzag, has come to an end.
Currently, there is a development of the initial part of a new corrective trend.
It is assumed that a standard 3-wave zigzag of the primary degree â’¶-â’·-â’¸ is being constructed.
Perhaps the first two sub-waves â’¶-â’· are fully completed, so growth is expected in the direction of the 1.0096 level, in the impulse â’¸, the last leg of which takes the form of an ending diagonal 1-2-3-4-5, as shown in the chart.
At that level, wave â’¸ will be at 123.6% of first impulse â’¶.
Alternatively, the cycle pattern may take a more complex form, that is, a triple zigzag w-x-y-x-z.
Thus, if this option is confirmed, we will see a decrease in the price and the construction of the final sub-wave z.
It is possible that the wave z will be at 123.6% of wave y and will complete its pattern near 0.931. And its first part, the primary sub-wave â’¶, may end at a minimum of 0.947.
An approximate scheme of possible future movement is shown on the chart.
