The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 0.7600 with a target of 0.8220–0.8400. A buy signal: the price holds above 0.7600. Stop Loss: below 0.7550, Take Profit: 0.8220–0.8400.
- Alternative scenario: Breakout and consolidation below the level of 0.7600 will allow the pair to continue declining to the levels of 0.7420–0.7200. A sell signal: the level of 0.7600 is broken to the downside. Stop Loss: above 0.7645, Take Profit: 0.7420–0.7200.
Main Scenario
Consider long positions above the level of 0.7600 with a target of 0.8220 – 0.8400 once the correction ends.
Alternative Scenario
Breakout and consolidation below 0.7600 will allow the pair to continue declining to the levels of 0.7420–0.7200.
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) has formed on the daily chart, and an ascending correction is developing as the fourth wave 4 of (5). Wave a of 4 has apparently formed on the H4 chart, and a local correction is developing as wave b of 4. If the presumption is correct, the USD/CHF pair will continue to rise to the levels of 0.8220 – 0.8400 after the correction is completed. The level of 0.7600 is critical in this scenario. A breakout below it will allow the pair to continue falling to the levels of 0.7420–0.7200.
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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