USD/CHF also showing a bearish pattern, with a potential strong drop if we consider the shape of an ending diagonal form Sep low. A break below red support line may be an important breakout point for stronger CHF.
USD/CHF, 1H
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final “C” wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement. They consist out of five legs, which each one having three minor waves. Waves 1 and 4 always overlap.
Ending diagonal pattern:
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