On the 4h chart of USDCHF we are looking at a triangle count, which now shows wave E) in progress following that recent three wave rally to 0.9884 that was recognized as wave D). As such new reversal down was wave A, the first leg of a three wave set-back in wave E) which may continue to 0.9630-0.9690 area this week from where market can see a strong bounce. On the other-hand rally above 0.9884 would suggest that wave E is already finished.
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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.
Basic Triangle Pattern: