NZDCHF SELL

In this NZDCHF 1-hour chart, the Elliott Wave Theory suggests a potential SELL opportunity. The price action shows a completed five-wave sequence upward followed by a developing corrective pattern.

We can see the impulsive wave sequence marked as (1) through (5), culminating in a peak at wave (5). The subsequent corrective phase, consisting of an A-B-C structure, is now unfolding. Wave (a) has completed, and wave (b) appears to have peaked, aligning with typical corrective behavior where wave (b) retests a significant portion of wave (a).

The current chart setup indicates that wave (c) could be beginning, which traditionally is a sharp move in the opposite direction of the preceding impulse waves. The Fibonacci extension levels for wave (c) suggest potential targets at 0.618 (0.53963), 1.000 (0.53763), and even down to 1.618 (0.53441). These levels are calculated from the end of wave (b) and are common retracement points in a corrective wave.

Given these observations, entering a SELL position near the current level or slightly higher (in anticipation of any final touches of wave (b)) could be beneficial. The target for this position would be set towards the first Fibonacci level at 0.53963, with further potential down to 0.53441, depending on market momentum and updates in price action.

Risk management is crucial, so setting a stop-loss just above the peak of wave (b) would protect against unexpected bullish movements. Continuous monitoring of price action is essential to confirm that wave (c) is progressing as anticipated and to adjust strategy accordingly.

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