The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 0.8100 with a target of 0.7700 – 0.7500. A sell signal: the price holds below 0.8100. Stop Loss: above 0.8100, Take Profit: 0.7700 – 0.7500.
- Alternative scenario: Breakout and consolidation above the level of 0.8100 will allow the pair to continue rising to the levels of 0.8386 – 0.8545. A buy signal: the level of 0.8100 is broken to the upside. Stop Loss: below 0.8100, Take Profit: 0.8386 – 0.8545.
Main Scenario
Consider short positions from corrections below the level of 0.8100 with a target of 0.7700 – 0.7500.
Alternative Scenario
Breakout and consolidation above the level of 0.8100 will allow the pair to continue rising to the levels of 0.8386 – 0.8545.
Analysis
A bearish fifth wave of larger degree 5 is developing on the weekly chart, with wave (5) of 5 forming as its part. The third wave 3 of (5) appears to be developing on the daily chart. Within it, wave i of 3 is formed, and corrective wave ii of 3 is completed. Apparently, wave iii of 3 has started unfolding on the H4 time frame, with local corrective wave (ii) of iii formed and wave (iii) of iii developing as part of its structure. If the presumption is correct, the USD/CHF pair will continue to drop to 0.7700 – 0.7500. The level of 0.8100 is critical in this scenario as a breakout above it will allow the pair to continue rising to the levels of 0.8386 – 0.8545.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of USDCHF in real time mode
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