The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 0.8890 with a target of 0.8586 – 0.8386. A sell signal: the price holds below 0.8890. Stop Loss: above 0.8920, Take Profit: 0.8586 – 0.8386.
- Alternative scenario: Breakout and consolidation above the level of 0.8890 will allow the pair to continue rising to the levels of 0.9024 – 0.9222. A buy signal: the level of 0.8890 is broken to the upside. Stop Loss: below 0.8860, Take Profit: 0.9024 – 0.9222.
Main Scenario
Consider short positions from corrections below the level of 0.8890 with a target of 0.8586 – 0.8386.
Alternative Scenario
Breakout and consolidation above the level of 0.8890 will allow the pair to continue rising to the levels of 0.9024 – 0.9222.
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 finished developing as the second wave ii of 3. Apparently, the third wave iii of 3 is unfolding 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 USD/CHF pair will continue to drop to 0.8586 – 0.8386. The level of 0.8890 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9024 – 0.9222.
Price chart of USDCHF in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
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