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USDCHF Elliott Wave Analysis Trading Lounge Day  Chart, 23 January 2024  

U.S. Dollar/Swiss Franc(USDCHF) Day Chart

USDCHF Elliott Wave Technical Analysis

Function: Trend

Mode: impulsive

Structure: sub waves of black wave 5

Position: Red wave C

Direction Next Lower Degrees: black wave 5(started)

Details: black  wave 4 looking completed at 0.87062 . Now black wave 5 is in play. Wave Cancel invalid level: 0.88816

The "USDCHF Elliott Wave Analysis Trading Lounge Day Chart" for 23 January 24, delves into the intricacies of the U.S. Dollar/Swiss Franc (USDCHF) currency pair, utilizing the Elliott Wave theory to discern potential market movements.

The declared "Function" is "Trend," emphasizing a focus on understanding and navigating the existing market direction. This suggests an intent to identify and capitalize on the prevailing trend.

The identified "Mode" is "Impulsive," indicating a phase characterized by strong, directional movements. In Elliott Wave terms, impulsive waves typically consist of five sub waves, labeled 1, 2, 3, 4, 5, with waves 1, 3, and 5 representing the primary directional phases.

The specified "Structure" involves the scrutiny of "sub waves of black wave 5," highlighting a meticulous examination of the internal subwave patterns within the broader structure of black wave 5. This provides a detailed understanding of the ongoing trend.

The "Position" is defined as "Red wave C," indicating the current phase within the Elliott Wave count. Red wave C is a subwave within the larger structure of black wave 5.

Regarding "Direction Next Lower Degrees," the focus is on the initiation of "black wave 5 (started)." This implies that the analyst anticipates the commencement of the fifth major wave within the broader degree structure.

In the "Details" section, it is noted that "black wave 4 looking completed at 0.87062," signaling the conclusion of the fourth corrective wave within the larger trend. The suggestion is that the market is transitioning into the impulsive phase of black wave 5.

The "Wave Cancel invalid level" is identified as "0.88816." This level serves as a crucial reference point, signifying that a breach of this level could invalidate the current wave count, prompting a reassessment of the analysis and potentially indicating a change in the anticipated market direction.

In summary, the USDCHF Elliott Wave Analysis for the daily chart on 23 January 24, highlights an impulsive trend, with black wave 4 concluded and the initiation of black wave 5. Traders are advised to monitor the market closely, with a keen eye on the invalidation level at 0.88816.

Technical Analyst: Malik Awais

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