USD/CHF is in a strong uptrend from 0.9550, where pair found support following Trump's victory. We now see sharp waves without overlaps, so we can be experiencing an impulse that belongs to a bigger bullish trend.
However, as we know nothing moves in straight lines, so recent slow price action above the 1.0000 support was a corrective wave which unfolded as a double zig-zag consolidation with support kicking in at the 1.0021 level, from where a nice sharp reversal towards and above the extreme of sub-wave X had followed. As such, this correction is completed and a new five wave structure is now in motion towards higher levels.
At the moment, we see price trading in red wave 4), that is displaying qualities of a possible EW triangle correction that could be in store for this corrective rally, before price may continue towards higher levels within wave 5).
USD/CHF, 4H
A triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
A basic triangle pattern:
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