Forex

USDCHF: Elliott Waves and Dovish SNB Are Pointing HigherJul 2, 2024

USDCHF turned higher this year, after breaking some important trendline connected from 2022 highs on a daily chart, where a breakout can lead to higher prices within a big triangle range. One of the reasons why Swiss franc is that weak compared to others is because SNB surprised and cut rates twice after inflation has softened. So as long as FED sticks to current rates, USDCHF may do well, but this cycle may change later this year when FED finally cuts if data convince them that inflation is back at normal levels again. But for now, we have to focus on the current trend and pattern which seems to be pointing higher, on USDCHF.

Looking at the chart below it looks like pair recently pulled lower into a higher degree corrective setback, temporary (A)-(B)-(C) corrective decline, where wave (C) appears completed because of five subwaves down from wave (B). We also see some nice reactions higher, from new low and back above 0.900 where overlap confirms the resumption of an uptrend. However, there can be some intraday setback as pair comes into a channel resistance now, near 0.9050. But sooner or later we think the channel will be out and more upside ahead, while the market is above 0.8826, the short-term invalidation level.

USDCHF 4h Elliott Wave Analysis

Become a premium member

Get daily Elliott Wave updates for some major Digital currencies, FIAT currency markets, major stock indexes, gold, silver, crude etc. or apply for unlimited access to the Elliot Wave educational videos.

DISCLAIMER

Any reviews, news, analysis, prices or other information contained on our website is provided as general market commentary and delivered electronically through a distribution channel to larger number of clients, therefore does not constitute investment advice or investment research. We are not trading advisors. Most of our work is for educational purposes only, with information based on Elliott Wave theory in real time. Trading forex, futures, options, stocks, cryptocurrenices or any another trading market carries a high level of risk, and may not be suitable for all investors.

The possibility exists that you could lose some or all of your initial investment; therefore you should not invest money that you cannot afford to lose. Our website and the information that we provide should not be relied upon as a substitute for extensive independent research before making your investment decisions. In no event will we be liable for any loss or damage on your account in connection with, the use of our products. For any real cash investments you have to contact your financial advisor.

Any information or material contained on our website is owned by Val Global d.o.o.. Reproduction is prohibited without Val Global d.o.o. prior license in writing.

By continuing to use the site, you agree to the use of cookies. Learn more.

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close