The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 0.9050 with a target of 0.8546 – 0.8325. A sell signal: after the level of 0.9050 is broken. Stop Loss: 0.9150; Take Profit: 0.8325.
- Alternative scenario: breakout and consolidation above the level of 0.9050 will allow the pair to continue rising to the levels of 0.9226 – 0.9451. A buy signal: after the level of 0.9050 is broken. Stop Loss: 0.8950, Take Profit: 0.9451.
Main scenario
Consider short positions from corrections below the level of 0.9050 with a target of 0.8546 – 0.8325.
Alternative scenario
Breakout and consolidation above the level of 0.9050 will allow the pair to continue rising to the levels of 0.9226 – 0.9451.
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) is unfolding. On the H4 time frame, a correction finished developing as the second wave of smaller degree ii of 3, and the third wave iii of 3 started forming. Apparently, wave (i) of iii is formed on the H1 time frame. If this assumption is correct, the USDCHF pair will continue to decline to 0.8546 – 0.8325 once a local correction (ii) of iii is over. The level of 0.9050 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9226 – 0.9451.
Price chart of USDCHF in real time mode
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