The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 0.9030 with a target of 0.8200 – 0.8000. A sell signal: the price holds below 0.9030. Stop Loss: above 0.9070, Take Profit: 0.8200 – 0.8000.
- Alternative scenario: Breakout and consolidation above the level of 0.9030 will allow the pair to continue rising to the levels of 0.9222 – 0.9438. A buy signal: the level of 0.9030 is broken to the upside. Stop Loss: below 0.8990, Take Profit: 0.9222 – 0.9438.
Main Scenario
Consider short positions below the level of 0.9030 with a target of 0.8200 – 0.8000 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 0.9030 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 is nearing completion as the second wave ii of 3. Apparently, wave (с) of ii is coming to its end on the H1 time frame, with wave v of (c) forming as its part. If the presumption is correct, the USDCHF pair will continue to drop to the levels of 0.8200 – 0.8000 within wave iii of 3 after the corrective wave ii of 3 is completed. The level of 0.9030 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
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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