The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 0.9023 with a target of 0.8586 – 0.8386. A sell signal: the price holds below 0.9023. Stop Loss: above 0.9050, Take Profit: 0.8586 – 0.8386.
- Alternative scenario: Breakout and consolidation above the level of 0.9023 will allow the pair to continue rising to the levels of 0.9222 – 0.9444. A buy signal: the level of 0.9023 is broken to the upside. Stop Loss: below 0.8990, Take Profit: 0.9222 – 0.9444.
Main Scenario
Consider short positions below the level of 0.9023 with a target of 0.8586 – 0.8386 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 0.9023 will allow the pair to continue rising to the levels of 0.9222 – 0.9444.
Analysis
A bearish fifth wave of larger degree 5 is presumably developing on the weekly chart, with wave (5) of 5 forming as its part. The first wave of smaller degree 1 of (5) is formed and a correction finished developing as the second wave 2 of (5) on the daily chart. The third wave 3 of (5) is currently unfolding. Apparently, a local correction is coming to an end as wave ii of 3 on the H4 chart, with wave c of ii nearing completion as its part. If the presumption is correct, the USD/CHF pair will continue falling to 0.8586 – 0.8386 after the correction is over. The level of 0.9023 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9222 – 0.9444.
Price chart of USDCHF in real time mode
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