The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 0.8742 with a target of 0.8200 – 0.8000. A sell signal: if the price holds below 0.8742. Stop Loss: above 0.8800, Take Profit: 0.8200 – 0.8000.
- Alternative scenario: breakout and consolidation above the level of 0.8742 will allow the pair to continue rising to the levels of 0.9044 – 0.9222. A buy signal: once the level of 0.8742 is broken to the upside. Stop Loss: below 0.8700, Take Profit: 0.9044 – 0.9222.
Main scenario
Consider short positions from corrections below the level of 0.8742 with a target of 0.8200 – 0.8000.
Alternative scenario
Breakout and consolidation above the level of 0.8742 will allow the pair to continue rising to the levels of 0.9044 – 0.9222.
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. On the H4 time frame, the third wave iii of 3 is formed, and a local correction has presumably developed as the fourth wave iv of 3. Apparently, the fifth wave v of 3 has started developing on the H1 time frame. If this assumption is correct, the USDCHF pair will continue to fall to 0.8200 – 0.8000. The level of 0.8742 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9044 – 0.9222.
Price chart of USDCHF in real time mode
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