Main scenario: after correction, consider short positions below the level of 0.9222 with a target of 0.8730 – 0.8325.
Alternative scenario: breakout and consolidation above the level of 0.9222 will allow the pair to continue rising to the levels of 0.9451 – 0.9838.
Analysis: the downside fifth wave of larger degree (5) is presumably unfolding on the daily time frame. As its part, wave 1 of (5) is formed, a bullish correction is completed as second wave 2 of (5), and the third wave 3 of (5) has started unfolding. The first wave of smaller degree i of 3 has formed on the H4 time frame, with wave (iii) of i completed as its part. Apparently, a local corrective wave ii of 3 is developing on the H1 time frame, within which wave (a) of ii is forming. If this assumption is correct, the USDCHF pair will continue to fall to 0.8730 – 0.8325 after the corrective wave ii of 3 finishes developing. The level of 0.9222 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9451 – 0.9838.
Price chart of USDCHF in real time mode
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