EUR/CHF: The Euro-Swiss Pair is Moving into the Weekly Blue Box
Now we will look at the weekly chart of the EURCHF: Euro Swiss FX pair. This cross is a logical combination of two pairs: EURUSD and USDCHF. Although both dollar-linked pairings are significantly more liquid, the EURCHF has its personality. Indeed, it creates a nice double-three structure from the January 2015 lows and so matches Fibonacci extension levels.
The market has delivered a short-term bounce and correction that has persisted as a broader 7-swing pattern. In this article, we examine the EURCHF trend during the last eight years and present a perspective with objectives for the next 3-5 years.
EUR/CHF weekly Elliott Wave Analysis
The weekly chart below depicts the price behavior of the EURCHF cross-ratio. The pair has built a cycle higher in red wave x of a cycle degree from the lows of January 2015. It reached a high of 1.2005 in April of this year. The advance is an Elliott wave zigzag pattern with three swings of correction. In general, the correction may be over within three swings. However, unlike stocks, FX is a range-bound market. As a result, the latter can also trend in corrective sequences.
A correction down in wave x has unfolded from the April 2018 highs as a double three pattern with a 3- 3-3 structure. First, wave ((W)) concluded in May 2020 with a low of 1.0492. Then, in March 2021, a connection in wave ((X)) printed a lower high at 1.1151. Wave ((Y)) has since formed three further swings downward.
As a result, the blue wave (A) of the black wave ((Y)) has reached the 1.0208- 0.9952 intermediary range, which corresponds to the 0.618-0.786 extension area. The last swing in blue wave (C) of black wave ((Y)) has reached 0.9626-0.8684 complete extension area after a bounce in wave (B). A powerful response higher can be noticed from that place. The bottom at 0.9407 lows is now anticipated to represent the conclusion of the whole cycle correction from January 2015 lows.
EURCHF may be at the early stages of a new cycle in red wave y as of the September 2022 lows. While trading above the 0.9407 lows, the pair can hit the 1.2811-1.4914 range in three swings. As a result, the intermediate zone 1.1512-1.2083 should give medium-term resistance.