The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 0.9030 with a target of 0.8200 – 0.8000. A sell signal: the price holds below 0.9030. Stop Loss: above 0.9060, Take Profit: 0.8200 – 0.8000.
- Alternative scenario: Breakout and consolidation above the level of 0.9030 will allow the pair to continue rising to the levels of 0.9222 – 0.9438. A buy signal: once the level of 0.9030 is broken to the upside. Stop Loss: below 0.9000, Take Profit: 0.9222 – 0.9438.
Main Scenario
Consider short positions below the level of 0.9030 with a target of 0.8200 – 0.8000 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 0.9030 will allow the pair to continue rising to the levels of 0.9222 – 0.9438.
Analysis
A downside fifth wave of larger degree (5) is presumably unfolding on the daily time frame. As its parts, wave 1 of (5) is formed, a bullish correction is completed as the second wave 2 of (5), and the third wave 3 of (5) continues unfolding. The first wave i of 3 is formed on the H4 chart, and a local correction is nearing completion as the second wave ii of 3. Apparently, wave (с) of ii is coming to its end on the H1 time frame, with wave v of (c) presumably nearing completion as its part. Upon its completion, if the presumption is correct, the USDCHF pair will continue to drop to the levels of 0.8200 – 0.8000 within wave iii of 3. The level of 0.9030 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9222 – 0.9438.
Price chart of USDCHF in real time mode
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