AUDCHF HEAD & SHOULDER BEARISH TRADE SETUP
Hi Traders,
The 4-hour chart of AUDCHF showed a reversal from a key resistance level and a broken H&S neckline.
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As shown, the breakout impulse can be seen as a five-wave impulse pattern, labeled i-ii-iii-iv-v (blue).
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The Elliott Wave theory states that a three-wave correction follows every impulse. That is exactly what we are looking for now in form of a-b-c (red) corrective pattern to retest the broken neckline that lined up with 50.0-61.8 FIb ratio as indicated on the chart.
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Once the 5-3 wave cycle is completed, the bears can be expected to lift the pair below 0.68783 area. If this analysis is correct, March should be just as enjoyable for the bears as December was.
.
Best of luck on the chart!
Veejahbee.
The 4-hour chart of AUDCHF showed a reversal from a key resistance level and a broken H&S neckline.
.
As shown, the breakout impulse can be seen as a five-wave impulse pattern, labeled i-ii-iii-iv-v (blue).
.
The Elliott Wave theory states that a three-wave correction follows every impulse. That is exactly what we are looking for now in form of a-b-c (red) corrective pattern to retest the broken neckline that lined up with 50.0-61.8 FIb ratio as indicated on the chart.
.
Once the 5-3 wave cycle is completed, the bears can be expected to lift the pair below 0.68783 area. If this analysis is correct, March should be just as enjoyable for the bears as December was.
.
Best of luck on the chart!
Veejahbee.