The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 0.7765 with a target of 0.8220–0.8400. A buy signal: the price holds above 0.7765. Stop Loss: below 0.7725, Take Profit: 0.8220–0.8400.
- Alternative scenario: Breakout and consolidation below the level of 0.7765 will allow the pair to continue declining to the levels of 0.7420–0.7200. A sell signal: the level of 0.7765 is broken to the downside. Stop Loss: above 0.7805, Take Profit: 0.7420–0.7200.
Main Scenario
Consider long positions from corrections above the level of 0.7765 with a target of 0.8220–0.8400.
Alternative Scenario
Breakout and consolidation below 0.7765 will allow the pair to continue declining to the levels of 0.7420–0.7200.
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) has formed on the daily chart, and an ascending correction is developing as the fourth wave 4 of (5). On the H4 timeframe, apparently, wave a of 4 and a local correction b of 4 have been completed, and wave c of 4 has started forming. If the presumption is correct, USD/CHF will continue to rise to the levels of 0.8220–0.8400. The level of 0.7765 is critical in this scenario. A breakout below it will allow the pair to continue falling to the levels of 0.7420–0.7200.
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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