The article covers the following subjects:
Key takeaways:
- 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) started unfolding. The first wave of smaller degree i of 3 is formed on the H4 chart, and a correction finished developing as the second wave ii of 3. Apparently, the third wave iii of 3 has started developing on the H1 time frame, with wave (i) of iii formed inside. If the presumption is correct, the USDCHF pair will continue to drop to the levels of 0.8546 – 0.8325 once a local correction (ii) of iii has finished developing. 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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