Elliott Wave theory enthusiasts might find the USDCHF pair particularly intriguing at this juncture. The pair completed an apparent impulsive wave and is now poised for a corrective phase. Following the end of sub-wave (5), a bearish trend appears imminent, as indicated by the recent downturn and the start of a corrective wave (a).
Technical projections suggest potential retracement targets at common Fibonacci levels of the preceding impulsive wave. The (c) wave often extends to the 1.618 level, a target we’ll be watching closely. Complemented by bearish momentum indicators, these levels could present attractive exits for a SHORT position.
Current price action suggests a continuation of the corrective pattern, with entry points just below the recent low of sub-wave (5). Setting stop-loss orders above the peak of wave (5) offers a strategic risk management approach. This trade is positioned to exploit the anticipated bearish correction, riding wave (a) to potentially profitable depths.