Bottom line:  USDCHF bearish outlook remains intact until prices stay below 1.0023, which is Wave 2 termination.  

Technical Analysis:

USDCHF seems to be pulling back after terminating Wave 3 of (3) below 0.9650 on December 31, 2019. Looking at the short term wave structure, bulls are poised to carve a Wave 4 top and might push prices through 0.9789 levels. Please note that the above is also 38% retracement of Wave 3, a common relationship for Wave 4 termination. Once this pullback is over, we can expect USDCHF to reverse lower again targeting below 0.9650. Ideally, the current pullback should end before 0.9840 levels, which is Wave 1 termination, as labelled here. The overall wave structure since 1.0237 highs in April 2018 reveals that the bearish structure is expected to remain intact until prices stay below 1.0027 levels, the Wave (2) termination. A classic 5-3-5 Elliott Wave pattern is underway, and the last 5 waves lower are seen to be unfolding. The drop between 1.0237 through 0.9659 was impulse, labelled as Wave (1). This was followed by a corrective rally A-B-C through 1.0027, labelled as Wave (2). Since then, USDCHF has been unfolding into Wave (3) subdivisions lower. Trading point of view, one can hold short positions from higher levels for long term targets below 0.9650. Fresh short positions could be initiated around 0.9789 levels, with stops above 0.9850 and projected targets below 0.9650, going forward. The current price action has been drifting a bit sideways but a push through 0.9789 could be expected before the drop resumes. Only a sustained break above the 1.0023 resistance, would nullify the above bearish structure. Bottom line, USDCHF should remain in control of bears and prices are expected to drop towards 0.9650 and further with 1.0023 resistance intact.

Prepared by

Harsh Japee, Technical Analyst.

USDCHF Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。