The USDCHF Elliott Wave analysis for the daily chart indicates a continuation of the downward trend, marked by an impulsive movement within orange wave 3. This structure suggests a strong bearish momentum in the market. The market is positioned within navy blue wave 3, a critical phase in the Elliott Wave sequence, signaling a significant ongoing downward push.

Before this phase, the market completed orange wave 2, a corrective wave that briefly interrupted the upward trend. With orange wave 2 now complete, the market has entered orange wave 3, which is currently driving the price lower. This transition from wave 2 to wave 3 typically marks a period of renewed market strength, as wave 3 is generally the most powerful and extended wave in an impulsive sequence.

The analysis also indicates that the direction of the next higher degree wave is expected to lead to orange wave 4, which would follow the completion of the current wave 3. However, the primary focus remains on the progression of orange wave 3, which is anticipated to continue pushing the market downward.

A crucial aspect of this analysis is the invalidation level set at 0.88779. This level serves as a key benchmark for confirming the current Elliott Wave count. If the market surpasses this level, it would invalidate the current wave structure, suggesting that the expected downward trend might not continue and could result in a reversal or significant correction.

Summary: The USDCHF daily chart analysis highlights a strong downward trend within orange wave 3, following the completion of orange wave 2. The ongoing navy blue wave 3 supports the bearish momentum, with the invalidation level at 0.88779 being critical for confirming the continuation of the trend.

USDCHF Elliott Wave Analysis Trading Lounge 4-Hour Chart.

U.S. Dollar/Swiss Franc (USDCHF) 4-Hour Chart.

USD/CHF Elliott Wave technical analysis

Function: Trend.
Mode: Impulsive.
Structure: Gray wave 3.
Position: Orange wave 3.
Direction next higher degrees: Gray wave 4.
Details: Gray wave 2 appears completed; now, gray wave 3 is in play.

Wave cancel invalid level: 0.88779.

The USDCHF Elliott Wave analysis on the 4-hour chart reveals a strong downtrend, with an impulsive mode indicated by gray wave 3. This suggests a powerful bearish movement in the market. The market is currently positioned within orange wave 3, a critical phase in the Elliott Wave sequence, which typically signals the continuation of the downward trend.

Prior to this phase, gray wave 2, a corrective wave, was completed. With gray wave 2 now out of the way, the market has transitioned into gray wave 3, which is currently driving the price downward. Gray wave 3 is often the strongest and most extended wave in an impulsive sequence, indicating that the current bearish momentum is likely to persist.

The direction of the next higher degree is expected to lead to gray wave 4 following the completion of the current gray wave 3. This suggests that after gray wave 3 runs its course, a corrective wave, gray wave 4, might occur, potentially pausing the downward trend before the final wave in the sequence.

A key aspect of this analysis is the wave cancellation invalid level set at 0.88779. This level is crucial for validating the current Elliott Wave count. If the market price exceeds this level, it would invalidate the current wave structure, implying that the anticipated downward trend might not continue and could instead lead to a reversal or significant correction.

Summary: The USDCHF 4-hour chart analysis indicates a strong downward trend within gray wave 3, following the completion of gray wave 2. The ongoing orange wave 3 reinforces the bearish momentum, with the invalidation level at 0.88779 being critical for confirming the continuation of this trend.

Technical analyst: Malik Awais.

USD/CHF Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.