Main scenario: consider long positions from corrections above the level of 0.8743 with a target of 0.9160 – 0.9352.
Alternative scenario: breakout and consolidation below the level of 0.8743 will allow the pair to continue declining to the levels of 0.8542 – 0.8250.
Analysis: an ascending correction of larger degree is formed as the fourth wave (4) on the daily chart. A bearish fifth wave (5) is unfolding. The first wave of smaller degree 1 of (5) is presumably formed on the H4 time frame chart, and a bullish correction started unfolding as second wave 2 of (5). Apparently, wave а of 2 continues developing in the H1 time frame, with wave (iii) of a forming as its part. If the presumption is correct, the pair will continue to rise to the levels of 0.9160 – 0.9352. The level of 0.8743 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 0.8542 – 0.8250.
Price chart of USDCHF in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.