The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 0.7860 with a target of 0.8168–0.8360. A buy signal: the price holds above 0.7860. Stop Loss: below 0.7860, Take Profit: 0.8168–0.8360.
- Alternative scenario: Breakout and consolidation below the level of 0.7860 will allow the asset to continue declining to the levels of 0.7700–0.7500. A sell signal: the level of 0.7860 is broken to the downside. Stop Loss: above 0.7860, Take Profit: 0.7700–0.7500.
Main Scenario
Consider long positions from corrections above the level of 0.7860 with a target of 0.8168–0.8360.
Alternative Scenario
Breakout and consolidation below 0.7860 will allow the pair to continue declining to the levels of 0.7700–0.7500.
Analysis
A bearish fifth wave of larger degree 5 is developing on the weekly chart, with wave (5) of 5 forming as its part. The third wave 3 of (5) has presumably formed on the daily chart, and a local correction is developing as the fourth wave 4 of (5). On the H4 time frame, apparently, wave a of 4 and wave b of 4 have been completed, and wave c of 4 is unfolding. If the presumption is correct, USD/CHF will continue to rise to the levels of 0.8168–0.8360. The level of 0.7860 is critical in this scenario. A breakout below it will allow the pair to continue falling to the levels of 0.7700–0.7500.
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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