The article covers the following subjects:
Highlights and key points
- Main scenario: once a correction forms, consider short positions below the level of 0.8875 with a bearish target of 0.8325 – 0.8160. A sell signal: after the price returns below 0.8875. Stop Loss: above 0.8900, Take Profit: 0.8325 – 0.8160.
- Alternative scenario: breakout and consolidation above the level of 0.8875 will allow the pair to continue rising to the levels of 0.9045 – 0.9226. A buy signal: after the level of 0.8875 is broken to the upside. Stop Loss: below 0.8850, Take Profit: 0.9045 – 0.9226.
Main scenario
Consider short positions below the level of 0.8875 with a target of 8325 – 0.8160 after the correction has formed.
Alternative scenario
Breakout and consolidation above the level of 0.8875 will allow the pair to continue rising to the levels of 0.9045 – 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) started unfolding. On the H4 time frame, a correction finished developing in the form of the second wave of smaller degree ii of 3, and the third wave iii of 3 is forming. On the H1 time frame, wave (iii) of iii appears to have formed, and a local correction is unfolding as wave (iv) of iii. Upon its completion, if the presumption is correct, the USDCHF pair will continue falling to 0.8325 – 0.8160. The level of 0.8875 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 0.9045 – 0.9226.
Price chart of USDCHF in real time mode
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