The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 0.8580 with a target of 0.7800 – 0.7600. A sell signal: the price holds below 0.8580. Stop Loss: above 0.8620, Take Profit: 0.7800 – 0.7600.
- Alternative scenario: Breakout and consolidation above the level of 0.8580 will allow the pair to continue rising to the levels of 0.8857 – 0.9195. A buy signal: the level of 0.8580 is broken to the upside. Stop Loss: below 0.8540, Take Profit: 0.8857 – 0.9195.
Main scenario
Consider short positions below the level of 0.8580 with a target of 0.7800 – 0.7600 once the correction is completed.
Alternative scenario
Breakout and consolidation above the level of 0.8580 will allow the pair to continue rising to the levels of 0.8857 – 0.9195.
Analysis
The bearish fifth wave of larger degree 5 is developing on the weekly chart, with wave (5) of 5 forming as its part. Apparently, the bullish correction has finished developing as the second wave 2 of (5) on the daily chart, and the third wave 3 of (5) is in progress. On the H4 time frame, the third wave of smaller degree iii of 3 is formed, and a local correction is developing as the fourth wave iv of 3. Upon its completion, if the presumption is correct, the USD/CHF pair will continue falling to 0.7800 – 0.7600. The level of 0.8580 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.8857 – 0.9195.
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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