The article covers the following subjects:
Highlights and key points
- Main scenario: once a correction forms, consider short positions below the level of 0.9047 with a bearish target of 0.8200 – 0.8000. A sell signal: after the price returns below 0.9047. Stop Loss: above 0.9080, Take Profit: 0.8200 – 0.8000.
- Alternative scenario: breakout and consolidation above the level of 0.9047 will allow the pair to continue rising to the levels of 0.9226 – 0.9400. A buy signal: after the level of 0.9047 is broken to the upside. Stop Loss: below 0.9020, Take Profit: 0.9226 – 0.9400.
Main scenario
Consider short positions below the level of 0.9047 with a target of 0.8200 – 0.8000 after the correction ends.
Alternative scenario
Breakout and consolidation above the level of 0.9047 will allow the pair to continue rising to the levels of 0.9226 – 0.9400.
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. On the H4 time frame, the first wave i of 3 of a smaller degree has developed, and a correction is unfolding in the second wave ii of 3. On the H1 time frame, the wave (c) of ii is forming. If the presumption is correct, the USDCHF pair will continue falling to 0.8200 – 0.8000 after the wave (c) of ii terminates. The level of 0.9047 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9226 – 0.9400.
Price chart of USDCHF in real time mode
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