USD/CHF: Elliott wave analysis and forecast for 05.07.24 – 12.07.24

July 5, 2024 1:48 pm

The article covers the following subjects:

Key takeaways

  • Main scenario: consider short positions from a correction below the level of 0.9050 with a target of 0.8730 – 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 0.8730 – 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 has finished developing on the H4 time frame, with wave (v) of i completed as its part. Apparently, a local correction has finished developing as the second wave ii of 3, and wave iii of 3 presumably started forming on the H1 chart. If the presumption is correct, the USD/CHF pair will continue to drop to 0.8730 – 0.8325. 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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