The article covers the following subjects:
Highlights and key points
- Main scenario: once a correction forms, consider short positions below the level of 0.8750 with a bearish target of 0.8200 – 0.8000. A sell signal: after the price returns below 0.8750. Stop Loss: above 0.8780, Take Profit: 0.8200 – 0.8000.
- Alternative scenario: breakout and consolidation above the level of 0.8750 will allow the pair to continue rising to the levels of 0.9044 – 0.9226. A buy signal: after the level of 0.8750 is broken to the upside. Stop Loss: below 0.8720, Take Profit: 0.9044 – 0.9226.
Main scenario
Consider short positions on corrections below the level of 0.8750 with a target of 0.8200 – 0.8000.
Alternative scenario
Breakout and consolidation above the level of 0.8750 will allow the pair to continue rising to the levels of 0.9044 – 0.9226.
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. On the H4 time frame, the first wave i of 3 of a smaller degree has developed, and a correction has ended in the second wave ii of 3. The wave iii of 3 is currently developing. On the H1 time frame, the wave (iii) of iii is forming. If the presumption is correct, the USDCHF pair will continue falling to 0.8200 – 0.8000. The level of 0.8750 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9044 – 0.9226.
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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