Hi traders,
The 4-hour chart of AUDCHF shows that the breakout and retest of the Head & Shoulder pattern neckline is a complete 5-3 wave cycle.
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The breakout shows a leading diagonal pattern in wave (i) and a zigzag pattern in wave (ii).
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Considering that the corrective structure is completed and price also retested the broken neckline that lined up with resistance level and 61.8 Fib ratio, a bearish continuation is expected in wave (iii).
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We will wait for the break out of the blue CTL to confirm the sell setup.
.
Best of luck on the chart!
Veejahbee.
The 4-hour chart of AUDCHF shows that the breakout and retest of the Head & Shoulder pattern neckline is a complete 5-3 wave cycle.
.
The breakout shows a leading diagonal pattern in wave (i) and a zigzag pattern in wave (ii).
.
Considering that the corrective structure is completed and price also retested the broken neckline that lined up with resistance level and 61.8 Fib ratio, a bearish continuation is expected in wave (iii).
.
We will wait for the break out of the blue CTL to confirm the sell setup.
.
Best of luck on the chart!
Veejahbee.