The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 0.8040 with a target of 0.7420–0.7200. A sell signal: the price holds below 0.8040. Stop Loss: above 0.8040, Take Profit: 0.7420–0.7200.
- Alternative scenario: Breakout and consolidation above the level of 0.8040 will allow the pair to continue rising to the levels of 0.8210–0.8400. A buy signal: the level of 0.8040 is broken to the upside. Stop Loss: below 0.8040, Take Profit: 0.8210–0.8400.
Main Scenario
Consider short positions below the level of 0.8040 with a target of 0.7420–0.7200 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 0.8040 will allow the pair to continue rising to the levels of 0.8210–0.8400.
Analysis
A bearish fifth wave of larger degree 5 is developing on the weekly chart, with wave (5) of 5 forming as its part. Apparently, the third wave 3 of (5) is forming on the daily time frame. Within it, a correction is completed as wave iv of 3 and wave v of 3 is unfolding. The third wave of smaller degree (iii) of v has presumably formed on the H4 time frame and a local correction is developing as the fourth wave (iv) of v. Upon its completion, if the presumption is correct, the USD/CHF pair will continue to fall to 0.7420–0.7200. The level of 0.8040 is critical in this scenario. A breakout above it will allow the pair to continue rising to the levels of 0.8210–0.8400.
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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