The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 0.8992 with a target of 0.9340 – 0.9530. A buy signal: the price holds above 0.8992. Stop Loss: below 0.8960, Take Profit: 0.9340 – 0.9530.
- Alternative scenario: Breakout and consolidation below the level of 0.8992 will allow the pair to continue declining to the levels of 0.8724 – 0.8386. A sell signal: the level of 0.8992 is broken to the downside. Stop Loss: above 0.9025, Take Profit: 0.8724 – 0.8386.
Main Scenario
Consider long positions from corrections above the level of 0.8992 with a target of 0.9340 – 0.9530.
Alternative Scenario
Breakdown and consolidation below a level of 0.8992 will allow the pair to continue declining to the levels 0.8724 – 0.8386.
Analysis
A bearish fifth wave of larger degree 5 is presumably developing on the weekly chart, with wave (5) of 5 forming as its part. On the daily chart, a correction continues developing as the second wave 2 of (5), with wave c of 2 forming as its part. Apparently, wave (v) of c of 2 is developing on the H4 time frame. If this assumption is correct, USD/CHF will continue to rise to 0.9340 – 0.9530. The level of 0.8992 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 0.8724 – 0.8386.
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
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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