The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 0.8040 with a target of 0.7420–0.7200. A sell signal: the price holds below 0.8040. Stop Loss: above 0.8040, Take Profit: 0.7420–0.7200.
- Alternative scenario: Breakout and consolidation above the level of 0.8040 will allow the pair to continue rising to the levels of 0.8210–0.8400. A buy signal: the level of 0.8040 is broken to the upside. Stop Loss: below 0.8040, Take Profit: 0.8210–0.8400.
Main Scenario
Consider short positions from corrections below the level of 0.8040 with a target of 0.7420–0.7200.
Alternative Scenario
Breakout and consolidation above the level of 0.8040 will allow the pair to continue rising to the levels of 0.8210–0.8400.
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 has been completed as wave iv of 3 and wave v of 3 is unfolding. Apparently, the third wave of smaller degree (iii) of v has formed and a local correction has been completed as the fourth wave (iv) of v on the H4 time frame. If the presumption is correct, USD/CHF will continue to drop to 0.7420–0.7200 within wave (v) of v. The level of 0.8040 is critical in this scenario. A breakout above it will allow the pair to continue rising to the levels of 0.8210–0.8400.
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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