USD/CHF: wave analysis 31 January 2019, 08:34

USD/CHF: wave analysis

31 January 2019, 08:34

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	0.9931
Take Profit	0.9854, 0.9819
Stop Loss	0.9994
Key Levels	0.9819, 0.9854, 0.9994, 1.0073, 1.0126

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.0000
Take Profit	1.0073, 1.0126
Stop Loss	0.9940
Key Levels	0.9819, 0.9854, 0.9994, 1.0073, 1.0126

The pair may fall within the correction.
On the 4-hour chart, a downward correction of the higher level developed as the wave (2), within which the wave C of (2) formed. Now the development of the third wave (3) has begun, within which the first wave of the lower level i of 1 of (3) has formed, and the development of the downward correction ii of 1 has begun. If the assumption is correct, the pair will fall to the levels of 0.9854–0.9819. In this scenario, critical stop loss level is 0.9994.


Main scenario
Short positions will become relevant during the correction, below the level of 0.9994 with the targets at 0.9854–0.9819. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price above the level of 0.9894 will let the pair grow to the levels of 1.0073–1.0126.