USDCHF H1: Wave Analysis for the European Session on 20.1.2026

The price continues to move down, but the USDCHF chart shows signs that the downward momentum is likely to end soon.
At a higher time interval, an ascending wedge continues to form. A downward corrective wave [iv] has been formed in this movement by this moment. Once this wave is completed, the formation of an upward wave [v] should be seen.
Waves of a lower time-frame form a triple three. The price is currently in the wave (z). When this wave is completed, a more directional price movement is expected.
To summarize, at the moment the USDCHF chart is maintaining a downward movement vector. However, the corrective wave is in the final stage of formation.
In this situation, long positions are prioritized.
Alternative scenario
Short positions will be relevant after the breakout of the current wave start level