The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 0.8541 with a bearish target of 0.8200 – 0.8000. A sell signal: if the price holds below 0.8541. Stop Loss: above 0.8600, Take Profit: 0.8200 – 0.8000.
- Alternative scenario: breakout and consolidation above the level of 0.8541 will allow the pair to continue rising to the levels of 0.8742 – 0.9044. A buy signal: once the level of 0.8541 is broken to the upside. Stop Loss: below 0.8500, Take Profit: 0.8742 – 0.9044.
Main scenario
Consider short positions from corrections below the level of 0.8541 with a target of 0.8200 – 0.8000.
Alternative scenario
Breakout and consolidation above the level of 0.8541 will allow the pair to continue rising to the levels of 0.8742 – 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 is formed, a local 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. Apparently, wave (iii) of iii is forming on the H1 chart, with wave iii of (iii) unfolding as its part. If the presumption is correct, the USDCHF pair will continue to drop to 0.8200 – 0.8000. The level of 0.8541 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.8742 – 0.9044.
Price chart of USDCHF in real time mode
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