The article covers the following subjects:
Highlights and key points
- Main scenario: once a correction forms, consider short positions below the level of 0.8750 with a bearish target of 0.8200 – 0.8000. A sell signal: after the price returns below 0.8750. Stop Loss: above 0.8780, Take Profit: 0.8200 – 0.8000.
- Alternative scenario: breakout and consolidation above the level of 0.8750 will allow the pair to continue rising to the levels of 0.9044 – 0.9226. A buy signal: after the level of 0.8750 is broken to the upside. Stop Loss: below 0.8720, Take Profit: 0.9044 – 0.9226.
Main scenario
Consider short positions on corrections below the level of 0.8750 with a target of 0.8200 – 0.8000.
Alternative scenario
Breakout and consolidation above the level of 0.8750 will allow the pair to continue rising to the levels of 0.9044 – 0.9226.
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) continues unfolding. On the H4 time frame, the first wave i of 3 of a smaller degree has developed, and a correction has ended in the second wave ii of 3. The wave iii of 3 is currently developing. On the H1 time frame, the wave (iii) of iii is forming. If the presumption is correct, the USDCHF pair will continue falling to 0.8200 – 0.8000. The level of 0.8750 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9044 – 0.9226.
Price chart of USDCHF in real time mode
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