The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 0.7963 with a target of 0.7700 – 0.7500. A sell signal: the price holds below 0.7963. Stop Loss: above 0.7963, Take Profit: 0.7700 – 0.7500.
- Alternative scenario: Breakout and consolidation above the level of 0.7963 will allow the pair to continue rising to the levels of 0.8195 – 0.8386. A buy signal: the level of 0.7963 is broken to the upside. Stop Loss: below 0.7963, Take Profit: 0.8195 – 0.8386.
Main Scenario
Consider short positions from corrections below the level of 0.7963 with a target of 0.7700 – 0.7500.
Alternative Scenario
Breakout and consolidation above the level of 0.7963 will allow the pair to continue rising to the levels of 0.8195 – 0.8386.
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) appears to be developing on the daily chart. Within it, wave i of 3 has formed, a correction ii of 3 is completed, and wave iii of 3 is unfolding. Apparently, the third wave of smaller degree (iii) of iii continues forming on the H4 time frame chart, with wave iii of (iii) developing as its part. If the presumption is correct, the USD/CHF pair will continue to drop to 0.7700 – 0.7500. The level of 0.7963 is critical in this scenario as a breakout above it will allow the pair to continue rising to the levels of 0.8195 – 0.8386.
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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