USD/CHF Predicted to Rise to 0.8400-0.8588 on Elliott Wave Theory
The technical analysis of the USD/CHF pair suggests a bullish outlook, according to LiteFinance analyst Alex Geuta. The Elliott Wave Theory indicates that a bearish fifth wave is developing on the weekly time frame, with a third wave forming on the daily chart.
A correction continues developing as the fourth wave within this larger degree 5, and an ascending correction is unfolding as its part. This implies that once the local correction iv of (v) is completed, the pair will continue to rise to 0.8400-0.8588.
However, a breakout below the critical level of 0.8171 would allow the pair to continue falling to the levels of 0.7950-0.7755. A buy signal would be triggered if the price settles above 0.8171, while a sell signal would occur if the level is broken to the downside.
The analysis emphasizes that fundamental factors should also be considered when developing trading strategies, as market situations can change rapidly.