The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 0.8390 with a target of 0.7700 – 0.7500. A sell signal: the price holds below 0.8390. Stop Loss: above 0.8445, Take Profit: 0.7700 – 0.7500.
- Alternative scenario: Breakout and consolidation above the level of 0.8390 will allow the pair to continue rising to the levels of 0.8545 – 0.8700. A buy signal: the level of 0.8390 is broken to the upside. Stop Loss: below 0.8320, Take Profit: 0.8545 – 0.8700.
Main Scenario
Consider short positions below the level of 0.8390 with a target of 0.7700 – 0.7500 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 0.8390 will allow the pair to continue rising to the levels of 0.8545 – 0.8700.
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, with the first wave of smaller degree i of 3 formed and a local correction developing as the second wave ii of 3. Apparently, wave (c) of ii is unfolding on the H4 time frame. If this assumption is correct, the USD/CHF pair will continue to fall to the levels of 0.7700 – 0.7500 once wave (c) of ii is complete. The level of 0.8390 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.8545 – 0.8700.
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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