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.
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:
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.
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: