USD/CHF For More Downside?
Today, the markets plummeted because of the emergence of a new COVID-19 strain that is considered a "Variant of concern" according to the WHO and if you've been following my market analyses on the internet you know that I have been predicting for a while that we may re-enter new lockdowns and restrictions because of new strains leading to current vaccines becoming ineffective.
If this scenario ends up being valid, this means that the Fed and other central banks will keep up with their QE programs while keeping rates artificially near 0, hence, creating more and more inflation. Not to mention the fiscal policies such as stimulus checks and etc...
Looking at USD/CHF (Weekly Chart), we can see that the price is currently trading inside an ABCDE continuation pattern that is indicating more downside. If this scenario stays in play, we can see USD/CHF continuing its way down for wave 5 towards 0.88000 and 0.86000 in the long run.
Additionally, the price successfully hasn't managed to break above the previous wave iv of wave (iii) area around 0.93272, thus staying below this level will be an amazing opportunity for us to keep shorting this pair to target more downside in the upcoming year.
If this scenario ends up being valid, this means that the Fed and other central banks will keep up with their QE programs while keeping rates artificially near 0, hence, creating more and more inflation. Not to mention the fiscal policies such as stimulus checks and etc...
Looking at USD/CHF (Weekly Chart), we can see that the price is currently trading inside an ABCDE continuation pattern that is indicating more downside. If this scenario stays in play, we can see USD/CHF continuing its way down for wave 5 towards 0.88000 and 0.86000 in the long run.
Additionally, the price successfully hasn't managed to break above the previous wave iv of wave (iii) area around 0.93272, thus staying below this level will be an amazing opportunity for us to keep shorting this pair to target more downside in the upcoming year.
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