The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 0.8400 with a target of 0.7950–0.7755. A sell signal: the price holds below 0.8400. Stop Loss: above 0.8440, Take Profit: 0.7950–0.7755.
- Alternative scenario: Breakout and consolidation above the level of 0.8400 will allow the pair to continue rising to the levels of 0.8588–0.8750. A buy signal: the level of 0.8400 is broken to the upside. Stop Loss: below 0.8360, Take Profit: 0.8588–0.8750.
Main Scenario
Consider short positions from corrections below the level of 0.8400 with a target of 0.7950–0.7755.
Alternative Scenario
Breakout and consolidation above 0.8400 will allow the pair to continue rising to the levels of 0.8588–0.8750.
Analysis
A bearish fifth wave of larger degree 5 is developing on the weekly time frame, with wave (5) of 5 forming as its part. The third wave 3 of (5) appears to have formed on the daily chart. An upward correction seems to have completed as the fourth wave 4 of (5), within which wave c of 4 has formed. Apparently, the fifth wave 5 of (5) has started developing on the H4 time frame. If this assumption is correct, the USD/CHF pair will continue to fall to 0.7950–0.7755. The level of 0.8400 is critical in this scenario. A breakout above it will allow the pair to continue rising to the levels of 0.8588–0.8750.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of USDCHF in real time mode
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