The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 0.7810 with a target of 0.7420–0.7200. A sell signal: the price holds below 0.7810. Stop Loss: above 0.7810, Take Profit: 0.7420–0.7200.
- Alternative scenario: Breakout and consolidation above the level of 0.7810 will allow the pair to continue rising to the levels of 0.8046–0.8210. A buy signal: the level of 0.7810 is broken to the upside. Stop Loss: below 0.7810, Take Profit: 0.8046–0.8210.
Main Scenario
Consider short positions from corrections below the level of 0.7810 with a target of 0.7420–0.7200.
Alternative Scenario
Breakout and consolidation above the level of 0.7810 will allow the pair to continue rising to the levels of 0.8046–0.8210.
Analysis
A bearish fifth wave of larger degree 5 is developing on the weekly chart, with wave (5) of 5 forming as its part. Apparently, the third wave 3 of (5) is forming on the daily time frame. Within it, a correction is completed as wave iv of 3 and wave v of 3 is unfolding. On the H4 chart, apparently, the third wave of smaller degree (iii) of v has formed, a local correction has finished developing as the fourth wave (iv) of v, and the fifth wave (v) of v is forming. If the presumption is correct, the USD/CHF pair will continue to drop to 0.7420–0.7200. The level of 0.7810 is critical in this scenario. A breakout above it will allow the pair to continue rising to the levels of 0.8046–0.8210.
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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