USDCHF has seen a fresh decline from the 0.8317 area, where the previously broken channel support line acted as resistance. This latest rejection increases the risk of further downside, and the broader Elliott Wave structure suggests that a third leg lower could now be developing.
More specifically, we are looking at a potential wave C decline, which could target the 0.8100 area next week. At that level, wave C would be approximately equal in length to wave A, creating a potentially important support zone.
Any recovery from current levels should be watched carefully, with 0.8317 standing out as the key resistance to overcome. For now, USDCHF remains neutral to bearish, particularly if we see further evidence that a higher-degree leading diagonal has already topped out.
A decisive break below 0.8110 would provide stronger confirmation of an important top and increase the probability of a deeper bearish continuation.
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