U.S. Dollar / Swiss Franc (USDCHF) Elliott Wave Analysis – Trading Lounge Daily Chart
USDCHF Elliott Wave Technical Analysis
FUNCTION: Bearish Trend
MODE: Impulsive
STRUCTURE: Orange wave 3
POSITION: Navy blue wave 3
DIRECTION NEXT HIGHER DEGREES: Orange wave 4
DETAILS: Completion of orange wave 2 is likely; orange wave 3 is actively forming.
Wave Cancel Invalid Level: 0.886
The daily USDCHF Elliott Wave forecast identifies a prevailing bearish trend led by the development of orange wave 3, which is part of the larger navy blue wave 3 cycle.
The end of the orange wave 2 correction has likely occurred, and price action has now shifted into the impulsive structure of orange wave 3. Historically, third waves often reflect the strongest and longest price movements, indicating sustained bearish pressure.
The key invalidation level stands at 0.886. A breakout above this threshold would negate the current bearish scenario. This daily analysis offers forex traders a clear outlook on both the short-term wave setup and its integration within the broader Elliott Wave structure.
Once orange wave 3 completes, a corrective pattern in orange wave 4 is expected, potentially followed by a new bearish leg via orange wave 5. The alignment between wave degrees is vital, as orange wave 3 contributes directly to the progression of the broader navy blue wave 3 structure.
Traders should anticipate the characteristics of a third wave, such as strong downward momentum and extended price moves. This setup supports bearish positioning, though risk control near the invalidation level remains essential.
This Elliott Wave outlook for USDCHF provides actionable trading insights, helping market participants align their strategies with the current daily downtrend structure.
U.S. Dollar / Swiss Franc (USDCHF) Elliott Wave Analysis – Trading Lounge 4-Hour Chart
USDCHF Elliott Wave Technical Analysis
FUNCTION: Bearish Trend
MODE: Impulsive
STRUCTURE: Gray wave 3
POSITION: Orange wave 3
DIRECTION NEXT HIGHER DEGREES: Gray wave 4
DETAILS: Gray wave 2 is assumed complete; gray wave 3 is unfolding.
Wave Cancel Invalid Level: 0.886
The 4-hour Elliott Wave analysis of USDCHF supports the daily bearish bias, showcasing active movement in gray wave 3, which forms part of orange wave 3.
Analysts point to the likely conclusion of gray wave 2. Current price action signals that gray wave 3 is in progress, typically a volatile and forceful segment known for accelerated moves and increased downside pressure.
The invalidation level remains at 0.886. A price action breach beyond this point would invalidate the current short-term bearish view. The 4-hour chart provides clarity for traders seeking near-term opportunities within the overarching trend.
After gray wave 3 concludes, a correction via gray wave 4 may occur, followed by continued selling pressure through gray wave 5. Wave alignment remains crucial—gray wave 3 directly feeds into orange wave 3’s downward structure.
Traders can expect key third-wave attributes, such as strong momentum and pronounced declines. While the setup favors short trades, strict attention to the invalidation zone is advised for effective risk management.
This technical overview gives forex traders focused guidance on USDCHF, reinforcing the bearish stance with both short- and mid-term perspectives grounded in Elliott Wave methodology.
Technical Analyst: Malik Awais
Source: Visit Tradinglounge.com and learn from the Experts Join TradingLounge Here
Previous: USDJPY Elliott Wave Technical Analysis
VALUE Offer - Buy 1 Month & Get 3 Months!Click here
Access 7 Analysts Over 200 Markets Covered. Chat Room With Support
