The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 0.8558 with a bearish target of 0.8200 – 0.8000. A sell signal: if the price holds below 0.8558. Stop Loss: above 0.8610, Take Profit: 0.8200 – 0.8000.
- Alternative scenario: breakout and consolidation above the level of 0.8558 will allow the pair to continue rising to the levels of 0.8753 – 0.9044. A buy signal: once the level of 0.8558 is broken to the upside. Stop Loss: below 0.8500, Take Profit: 0.8753 – 0.9044.
Main scenario
Consider short positions on corrections below the level of 0.8558 with a target of 0.8200 – 0.8000.
Alternative scenario
Breakout and consolidation above the level of 0.8558 will allow the pair to continue rising to the levels of 0.8753 – 0.9044.
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 of smaller degree i of 3 has formed, a correction has finished developing as the second wave ii of 3, and the third wave iii of 3 is unfolding on the H4 time frame. On the H1 chart, a local correction has developed as wave (iv) of iii, and wave (v) of iii continues to unfold. If the presumption is correct, the USDCHF pair will continue falling to 0.8200 – 0.8000. The level of 0.8558 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.8753 – 0.9044.
Price chart of USDCHF in real time mode
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