Traders have been closely monitoring the USDCHF currency pair, especially after the recent breakout that confirmed a bearish bias. The completion of a medium-term bullish corrective cycle in April 2024 marked a significant turning point for the pair. The weekly chart analysis revealed a supercycle 4th wave completion in December 2016, indicating the beginning of wave (V). With a clear path laid out for wave I of (V), traders were able to anticipate further downside movement.
Following the breakdown below the second low in April 2024, traders were keen on identifying key levels for potential trading opportunities. By zooming in on the H4 and H1 charts, traders were able to track the development of wave (I) of ((5)) and anticipate wave (2) corrections. The precision in identifying the end of wave (2) between 0.9029-0.9101 allowed for successful trading decisions based on the expected wave (3) downwards.
As the bearish cycle continued, traders remained focused on selling bounces in line with the prevailing trend. The breakdown below the start of wave (1) confirmed the accuracy of the projected path and reinforced the commitment to trading in the direction of the trend. By selling bounces on both the shorter H1/30Mins and H4 charts, traders were able to capitalize on the sharp decline in wave (i) of ((iii)).
Following the Trend
The importance of trading in the direction of the trend cannot be overstated. As the market mantra goes, “the trend is your friend.” Traders were advised to remain sellers and avoid trading against the prevailing bearish cycle until it reaches its completion. By adhering to this principle, traders were able to navigate the market effectively and capitalize on profitable trading opportunities.
The analysis of the USDCHF currency pair has provided valuable insights into the future path of the pair. By carefully monitoring key levels, executing trades in line with the trend, and remaining committed to the projected path, traders were able to navigate the market successfully. The ability to anticipate market movements and make informed trading decisions allowed traders to capitalize on the bearish cycle and maximize their profitability.