The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 0.7948 with a target of 0.8204–0.8400. A buy signal: the price holds above 0.7948. Stop Loss: below 0.7910, Take Profit: 0.8204–0.8400.
- Alternative scenario: Breakout and consolidation below 0.7948 will allow the pair to continue declining to the levels of 0.7755–0.7593. A sell signal: the level of 0.7948 is broken to the downside. Stop Loss: above 0.7985, Take Profit: 0.7755–0.7593.
Main Scenario
Consider long positions from corrections above 0.7948 with a target of 0.8204–0.8400.
Alternative Scenario
Breakout and consolidation below 0.7948 will allow the pair to continue declining to the levels of 0.7755–0.7593.
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, and the ascending correction is still unfolding as the fourth wave 4 of (5). Apparently, wave c of 4 continues developing on the H4 chart, with wave (v) of c forming as its part. If the presumption is correct, USD/CHF will continue to rise to the levels of 0.8204–0.8400. The level of 0.7948 is critical in this scenario. A breakout below it will allow the pair to continue falling to the levels of 0.7755–0.7593.
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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