The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 0.8955 with a target of 0.8200 – 0.8000. A sell signal: the price holds below 0.8955. Stop Loss: above 0.8990, Take Profit: 0.8200 – 0.8000.
- Alternative scenario: Breakout and consolidation above the level of 0.8955 will allow the pair to continue rising to the levels of 0.9222 – 0.9438. A buy signal: the level of 0.8955 is broken to the upside. Stop Loss: below 0.8920, Take Profit: 0.9222 – 0.9438.
Main Scenario
Consider short positions from corrections below the level of 0.8955 with a target of 0.8200 – 0.8000.
Alternative Scenario
Breakout and consolidation above the level of 0.8955 will allow the pair to continue rising to the levels of 0.9222 – 0.9438.
Analysis
A downside fifth wave of larger degree (5) is presumably unfolding on the daily time frame. As its parts, wave 1 of (5) is formed, a bullish correction is completed as the second wave 2 of (5), and the third wave 3 of (5) continues unfolding. The first wave i of 3 is formed on the H4 chart, and a local correction has presumably finished developing as the second wave ii of 3. Apparently, the third wave iii of 3 has started developing on the H1 time frame, with the first counter-trend wave of smaller degree i of (i) of iii forming inside. If the presumption is correct, the USDCHF pair will continue to drop to 0.8200 – 0.8000. The level of 0.8955 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9222 – 0.9438.
Price chart of USDCHF in real time mode
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