USD/CHF Bearish Trend Predicted by Elliott Wave Analysis

The USD/CHF currency pair is in a bearish trend, according to an Elliott Wave Analysis. The analysis suggests that a sell signal will be triggered if the price holds below 0.8132, with a target of 0.7755-0.7593. This scenario is based on the development of a bearish fifth wave of larger degree 5.

The analysis indicates that the third wave 3 of (5) has formed and an ascending correction 4 of (5) has completed, leading to the start of wave 5 of (5). On the H4 time frame, the first wave of smaller degree i of 5 is developing, with a local correction as wave (iv) of i.

The level of 0.8132 is critical in this scenario, and a breakout above it will allow the pair to continue rising to the levels of 0.8400-0.8600. However, if the price holds below 0.8132, the USD/CHF pair will likely fall to 0.7755-0.7593.