USDCHF – Potential Third Wave Formation

USDCHF – Potential Third Wave Formation

Current price: 0.7969
The U.S. dollar against the Swiss franc is showing a potential bullish reversal setup after completing a corrective decline. Price action structure suggests the start of an impulsive wave sequence, targeting higher Fibonacci extensions.

🧩 Technical Overview
• The pair successfully rebounded from 0.7910–0.7920 support, forming a clean base structure at the lower boundary of the short-term channel.
• A breakout above 0.7980–0.8000 signals early confirmation of a potential wave 3 development.
• The pattern is forming a symmetrical recovery phase consistent with Fibonacci expansion ratios.

📈 Scenario
• Stop-loss: below 0.7920, under the last structural low.
• Upside targets:
– 0.8095–0.8100 — short-term objective / 1.0 Fib projection
– 0.8085–0.8090 — possible consolidation / wave 4 area
– 0.8170–0.8180 — extended upside target (2.618 Fib projection)
• Break and 4H close above 0.8000 would confirm wave 3 continuation.

⚙️ Market Context
• USDCHF is recovering from oversold conditions within a broader consolidation phase.
• The recent correction likely completed a wave 2, setting the stage for renewed bullish momentum.
• Dollar demand remains supported by stable U.S. yields, while CHF underperforms amid reduced safe-haven flows.

🧭 Summary
USDCHF shows a clear potential wave 3 setup, with momentum shifting upward.
• As long as price holds above 0.7920, structure favors continuation toward 0.8095 → 0.8170.
• A confirmed breakout above 0.8000 will solidify the bullish scenario, while a return below 0.7920 invalidates it.