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USDCHF Elliott Wave Analysis Trading Lounge 4 Hour Chart, 21 July 2023.  

U.S. Dollar/CHF(USDCHF)  4 Hour Chart

USDCHF Elliott Wave Technical Analysis

Function:  CounterTrend

Mode: Impulsive

Structure: Subwave 5 of C

Position: Wave C

Direction Next Lower Degrees: wave (5) of Motive

Details:  Subwave Wave “4” may completed at 0.86846. Subwave 5 Wave confirmation level 0.85612. Wave Cancel invalid level: 0.88981

On 21st July 23, the 4-hour chart of the U.S. Dollar/Swiss Franc (USDCHF) pair is analyzed using Elliott Wave theory, indicating a counter-trend movement with an impulsive mode. The function of the price movement is identified as a counter-trend, while the mode is characterized as impulsive.

The current structure is recognized as Subwave 5 of C, with the position of the price wave designated as Wave C. The projected direction for the next lower degrees is wave (5) of a larger Motive wave pattern.

The analysis provides further details, suggesting that Subwave Wave "4" may have already completed its corrective phase, potentially reaching the level of 0.86846. The market is now looking for confirmation of Subwave 5 Wave, which is expected to occur around the level of 0.85612.

It is essential to note that the wave count provided will lose its validity if the USDCHF price exceeds the level of 0.88981.

As of the specified date, 21st July 2023, traders in the USDCHF market should closely monitor the counter-trend impulsive movement and wait for confirmation of Subwave 5 before considering potential trading opportunities. Counter-trend trading can be more challenging than trading with the trend, as it involves identifying potential reversals and requires strict risk management practices to mitigate potential losses.

Traders should exercise caution and combine the Elliott Wave analysis with other technical indicators and fundamental factors to gain a comprehensive understanding of the USDCHF market's current and potential future movements.

While Elliott Wave analysis offers valuable insights into market patterns and potential price movements, no analysis is infallible. Market conditions can change rapidly due to various factors such as economic data, geopolitical events, and shifts in market sentiment. As such, traders should adapt their strategies accordingly and always prioritize risk management to safeguard their trading capital.

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