Main scenario: long positions will be relevant above the level of 0.8761 with a target of 0.9169 – 0.9476 once correction has formed.
Alternative scenario: breakout and consolidation below the level of 0.8761 will allow the pair to continue declining to the levels of 0.8600 – 0.8500.
Analysis: Daily time frame: presumably, a descending first wave of larger degree (1) of 5 was formed, and an ascending correction is now developing as second wave (2) of 5. H4 time frame: wave A of (2) was formed, and wave B of (2) is nearing completion. Apparently, the fifth wave of smaller degree (v) of c of B is nearing completion on the H1 time frame. Upon its completion, if our presumption is correct, the pair may be expected to rise to the levels of 0.9169 – 0.9476. The level of 0.8761 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 0.8600 – 0.8500.
Price chart of USDCHF in real time mode
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