USDCHF Elliott Wave Analysis Trading Lounge

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

USDCHF Elliott Wave Technical Analysis

• Function: Bearish Trend
• Mode: Impulsive
• Structure: Orange Wave 3
• Position: Navy Blue Wave 1
• Direction Next Lower Degrees: Orange Wave 3 (Active)
• Details: Orange wave 2 within navy blue wave 1 appears complete; orange wave 3 is now in progress.
• Wave Cancel Invalidation Level: 0.91967

The USDCHF daily chart analysis based on Elliott Wave Theory indicates an ongoing bearish trend in an impulsive phase. The focus is currently on orange wave 3, which has started following the completion of orange wave 2 within navy blue wave 1.

The transition from the corrective phase of orange wave 2 to the stronger and more dynamic orange wave 3 suggests an increase in selling pressure and downward momentum. This phase typically brings strong price declines, reinforcing the overall bearish trend.

With navy blue wave 1 in place, the broader outlook remains bearish. The development of orange wave 3 is expected to push prices lower, and traders should closely observe market conditions for continuation signals or potential corrections.

The wave cancel invalidation level is set at 0.91967. If the price surpasses this threshold, the current wave structure would become invalid, requiring a reassessment of the market outlook. Tracking this key level is crucial for confirming the ongoing impulsive wave or identifying deviations from the expected trend.

Conclusion

The USDCHF daily chart continues to support a bearish trend driven by the development of orange wave 3 within navy blue wave 1. As orange wave 2 has completed, traders should anticipate stronger downward price movements in the near term. Monitoring the invalidation level remains essential to ensure accurate market analysis and adjust trading strategies accordingly.

U.S. Dollar / Swiss Franc (USDCHF) 4-Hour Chart

USDCHF Elliott Wave Technical Analysis

• Function: Counter-Trend
• Mode: Corrective
• Structure: Gray Wave 2
• Position: Orange Wave 3
• Direction Next Lower Degrees: Gray Wave 3
• Details: Gray wave 1 of orange wave 3 appears complete; gray wave 2 is currently developing.
• Wave Cancel Invalidation Level: 0.91992

The USDCHF 4-hour chart analysis based on Elliott Wave Theory indicates a counter-trend movement in a corrective phase. The current wave structure revolves around gray wave 2 within orange wave 3, signaling a transitional phase in market dynamics.

The completion of gray wave 1 suggests that the market has now entered gray wave 2, a corrective phase commonly marked by retracements or consolidations. This correction is expected before the market transitions into the next impulsive wave—gray wave 3 within orange wave 3.

The wave analysis implies that traders should expect potential fluctuations and sideways movements during this phase. Observing changes in market momentum and price action will be crucial in determining the next move.

The wave cancel invalidation level is defined at 0.91992. A breach beyond this threshold would invalidate the current wave count, requiring a reassessment of the market outlook. Close monitoring of this key level is essential to confirm the continuation of the corrective pattern or indicate a possible shift in market direction.

Conclusion

The USDCHF 4-hour chart presents a corrective market scenario with gray wave 2 in play after the completion of gray wave 1. Traders should anticipate retracements or consolidations during this phase and keep an eye on the invalidation level to refine their trading strategies. The next anticipated movement is the potential transition into gray wave 3 within orange wave 3, indicating a resumption of the impulsive trend.

Technical Analyst : Malik Awais

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