The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 0.8132 with a target of 0.7755–0.7593. A sell signal: the local correction ends and the price holds below 0.8132. Stop Loss: above 0.8170, Take Profit: 0.7755–0.7593.
- Alternative scenario: Breakout and consolidation above the level of 0.8132 will allow the pair to continue rising to the levels of 0.8400–0.8600. A buy signal: the level of 0.8132 is broken to the upside. Stop Loss: below 0.8095, Take Profit: 0.8400–0.8600.
Main Scenario
Consider short positions from corrections below the level of 0.8132 with a target of 0.7755–0.7593.
Alternative Scenario
Breakout and consolidation above 0.8132 will allow the pair to continue rising to the levels of 0.8400–0.8600.
Analysis
A bearish fifth wave of larger degree 5 is developing on the weekly time frame, with wave (5) of 5 forming as its part. On the daily time frame, the third wave 3 of (5) appears to have formed, an ascending correction 4 of (5) seems to have completed, and wave 5 of (5) has started to unfold. On the H4 time frame, the first wave of smaller degree i of 5 is apparently developing. Within it, wave (iii) of i has formed, and a local correction has started developing as wave (iv) of i. Upon its completion, if the presumption is correct, the USD/CHF pair will continue falling to 0.7755–0.7593. The level of 0.8132 is critical in this scenario. A breakout above it will allow the pair to continue rising to the levels of 0.8400–0.8600.
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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