✈️ AUD/CHF Still Have More Bullish Momentum Presenting Wave 5 ✈️

3 min read
Adarwish

adarwish

Author

Hi Traders,

AUD/CHF showed strong bullish momentum, which is probably a wave 3 pattern.

Today’s article reviews potential trade setups when price completes its wave 4 correction and starts a potential wave 5.

AUD/CHF Testing 38.2% Fib Levels

We saw a bullish wave 3 momentum on the AUD/CHF during the previous week and the currency pair is now in a wave 4 pullback.

At the moment I am waiting for a confirmation that wave 4 is indeed completed and that price is ready for the start of wave 5.

Here are the 4 main conclusions:

  1. Wave 4 never moves into wave 1 range which means that a retracement below the 61.8% Fib invalidates the wave 3-4 pattern.
  2. Typical Fib count of Wave 4 is 38.2%, 50% or 61.8% of wave 3… We are looking for a price action reversal signal at any of these Fib ratios.
  3. The weekly candle close is a strong bullish candle, which is indicating more potential upside.
  4. Wave 5 target is around -27.2 Fibonacci level at +/-0.7534.

So at the moment, I am only looking for buying opportunities on this currency pair because I want to trade wave 5 once the wave 4 pullback is finished.

AUD/CHF 4 Hours Chart Using SWAT Software

Now it’s time to use the SWAT charts to pinpoint potential trade setups within the expected wave structure and patterns.

As we see from the below chart, bullish price action reached the 4th wizz level to the pip. It was followed by a bearish correction which could be a wave 4 (as explained above).

The next step is to wait for confirmation that wave 5 is indeed starting. This is where the SWAT software is key.

Here are the main points to take into consideration:

  1. Price should above the 144 EMA
  2. Price needs to break the 21 Ema with a strong candle
  3. Our target  is aiming at -/+0.76210 at Wizz level 5

Good trading,

Ahmed
https://twitter.com/Adarwiah2001

.

2
Leave a Reply

avatar
2 Comment authors
Adarwishmuhammad farooq Recent comment authors

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
newest oldest most voted
Notify of
Avatar
Guest
muhammad farooq

is wave 4 un-folding with expanding flat channel?