Today, we will talk about USDCHF, its price action from a technical point of view, wave structure from the Elliott Wave perspective, and its correlation with silver.

USDCHF, Daily

USDCHF made a sharp and strong rally from the lows, clearly visible with five waves on a daily chart which actually suggests a bullish reversal at least in three waves A/1-B/2-C/3. The current decline can be already as part of a three-wave corrective pullback in wave B/2 that can retrace the price for 50%-61,8% before the uptrend within wave C/3 resumes.

USDCHF,4H

Looking at the 4-hour chart, we see USDCHF trading in the middle of a three-wave A)-B)-C) the pullback in wave B/2, where waves B) and C) are still missing, so after a potential recovery in wave B) that can retest 0.93x resistance zone, we may see another push to the downside for wave C) down to 0.90x support area.

SILVER,4H

Well, the main reason for weaker USD and stronger CHF in the upcoming days/weeks could be silver, which is actually negatively correlated to USDCHF pair. We see it nicely recovering after a completed diagonal pattern that indicates for a bigger recovery at least in three waves and least up to 26-28 area.