THB Extended Wave 3: A Wave 4 Correction on the Horizon?

The USD/THB pair has experienced a notable strengthening of the Thai Baht, which has extended into a pronounced Wave 3, as indicated by the Elliott Wave pattern on the chart. This movement has driven the price down significantly, with the Fibonacci Extension level surpassing the critical 200% mark.

This substantial drop suggests that the third wave was particularly powerful, often referred to as an "extended wave," which is a common occurrence in strong trends. Traders observing this pattern may now be anticipating a Wave 4 correction. Typically, after such an extended move, the market tends to pause or retrace before continuing in the direction of the trend.

As we move forward, it will be crucial to watch for signs of this anticipated correction, which could offer opportunities for traders looking to capitalize on the pullback before the final fifth wave unfolds. The market’s behavior in the coming sessions will be critical in determining whether this correction materializes, providing a potential entry point for those who have been waiting on the sidelines.

Tanakorn_Koomrampai_CMT_CFTe

Tanakorn Koomrampai ,CMT, CFTe
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