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

USDCHF Elliott Wave Technical Analysis

• Function: Counter Trend
• Mode: Corrective
• Structure: Orange Wave 2
• Position: Navy Blue Wave 3
• Direction Next Higher Degree: Orange Wave 3
• Wave Cancel Invalid Level: 0.91975

Analysis Overview

The USDCHF Elliott Wave Analysis on the day chart indicates a counter-trend scenario, suggesting that the market is in a corrective mode. The current structure positions USDCHF within Orange Wave 2, forming part of the broader Navy Blue Wave 3. This suggests an intermediate corrective phase before the larger trend resumes.

Wave Structure & Market Outlook

• Orange Wave 1 appears completed, marking the transition into Orange Wave 2, which is currently in play.
• Orange Wave 2 is expected to exhibit corrective characteristics, potentially moving sideways or slightly higher before Orange Wave 3 begins.
• The completion of Orange Wave 2 will be a critical turning point, as it will likely signal the start of Orange Wave 3, expected to align with the broader bullish trend.

Key Technical Levels

• Wave Cancellation Level: 0.91975 – If the price moves above this level, the current wave count will be invalid, requiring a reassessment of the market structure.
• This level acts as a key resistance; a break above it could indicate a shift in trend dynamics or a potential new wave pattern.

Conclusion

USDCHF is currently in a corrective phase, with Orange Wave 2 in progress following the completion of Orange Wave 1. This movement remains part of the Navy Blue Wave 3 structure, with Orange Wave 3 anticipated as the next significant move.

Traders should monitor the completion of Orange Wave 2, as it will provide key insights into the timing and direction of the next higher-degree wave. This analysis emphasizes the importance of understanding Elliott Wave structures to anticipate potential market movements and develop strategic trading plans accordingly.

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

USDCHF Elliott Wave Technical Analysis

• Function: Counter Trend
• Mode: Corrective
• Structure: Orange Wave 2
• Position: Navy Blue Wave 3
• Direction Next Higher Degree: Orange Wave 3
• Wave Cancel Invalid Level: 0.91975

Analysis Overview

The USDCHF Elliott Wave Analysis on the 4-hour chart highlights a counter-trend scenario, indicating that the market remains in a corrective mode. The current structure positions USDCHF in Orange Wave 2, which forms part of a broader Navy Blue Wave 3. This suggests that the market is undergoing an intermediate corrective phase before resuming its larger trend.

Wave Structure & Market Outlook

• Orange Wave 1 has likely concluded, allowing the market to transition into Orange Wave 2, which is currently unfolding.
• Orange Wave 2 is expected to exhibit corrective characteristics, possibly showing sideways or minor upward movements before Orange Wave 3 starts.
• The completion of Orange Wave 2 will be a crucial event, as it may signal the beginning of Orange Wave 3, which is anticipated to align with the broader bullish trend.

Key Technical Levels

• Wave Cancellation Level: 0.91975 – If the price surpasses this level, the current wave count will be invalidated, requiring a reassessment of the market structure.
• This level functions as a key resistance; a breach could indicate a shift in trend direction or the formation of a new wave pattern.

Conclusion

USDCHF is currently navigating a corrective phase, with Orange Wave 2 in progress following the completion of Orange Wave 1. This movement remains part of the Navy Blue Wave 3 structure, with Orange Wave 3 expected to be the next major development.

Traders should monitor the completion of Orange Wave 2 closely, as it will offer essential insights into the timing and direction of the next higher-degree wave movement. This analysis emphasizes the significance of understanding Elliott Wave structures to predict market movements and implement strategic trading decisions effectively.

Technical Analyst: Malik Awais

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