The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions above 0.8008 with a target of 0.8220–0.8400 once correction is over. A buy signal: the price holds above 0.8008 after the correction ends. Stop Loss: below 0.7965, Take Profit: 0.8220–0.8400.
- Alternative scenario: Breakout and consolidation below 0.8008 will allow the asset to continue declining to the levels of 0.7900–0.7755. A sell signal: the level of 0.8008 is broken to the downside. Stop Loss: above 0.8050, Take Profit: 0.7900–0.7755.
Main Scenario
Consider long positions above 0.8008 with a target of 0.8220–0.8400 after the correction ends.
Alternative Scenario
Breakout and consolidation below 0.8008 will allow the pair to continue declining to the levels of 0.7900–0.7755.
Analysis
On the weekly chart, a bearish fifth wave of larger degree 5 is developing, with wave (5) of 5 forming as its part. On the daily chart, the third wave 3 of (5) has formed, and an ascending correction is developing as the fourth wave 4 of (5). On the 4-hour chart, wave c of 4 is underway, with wave (iii) of c of lower degree completed and corrective wave (iv) of c currently unfolding. If the presumption is correct, USD/CHF will continue to rise to the levels of 0.8220–0.8400 once the correction is complete. The level of 0.8008 is critical in this scenario. A breakout below it will allow the pair to continue falling to the levels of 0.7900–0.7755.
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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