The USDJPY has now followed the expected path and has traded back into the wedge and closed within the wedge completing the Wolfe Wave pattern.
Will CHFSEK break out of its narrow trading range?
For the past week, we have seen an appreciation in USDCAD which has traced up the C-D leg of a bearish Gartley pattern. Point D has now been met and according to chart theory, if the XABC points have all been met and the price moves towards the last level D and reaches that point, the pattern would indicate a reversal at this level and a possible retracement of 38.2 - 61.8% of the CD distance.
Since the middle of February, we have seen a drop in the price of AUDJPY which has followed the C-D line of a bullish crab pattern. The price has now reached point D which according to chart theory means the pattern has been completed and there should now be a reversal.
The AUDUSD rate has been declining since the middle of March towards point D but this has been interrupted by a short bounce and retracement which is creating a new possible harmonic pattern in the form of a bearish butterfly. If by the end of trading over the next couple of days, the price continues to drop to around the 0.75006 level we could see a possible reversal back up the new C-D line.
Since the 10th of March we have seen a fall in the USDJPY rate which has created multiple Wolfe Waves indicating that after the recent drop, we could be looking at a reversal. The price has been falling since the announcement from Trump that the USD is overvalued but how much longer can this influence the market.
The Bullish Butterfly is flapping – a medium term look at GBPCHF
After article 50 has finally arrived will we see the drop in Sterling value echoed by many analysists or are we seeing a market pushed by speculators about to reverse course.
After the volatile movements during the triggering of article 50, we have seen the market calm and start to paint a clear picture of the future movement. The sharp movement yesterday after the original post could create a longer term bullish butterfly pattern if GBP continues to strengthen.
EURUSD has been dropping since the 13th of March and there are signs that if this trend continues a short term trading opportunity will emerge. Following this, a possible bearish butterfly or crab pattern will form allowing for a very high probability trade with a great risk to reward ratio.