Hello traders, welcome to this new blog post where we discuss blue boxes. This time, we’ll focus on USDCHF, which reacted as expected from the blue box, putting our members in profit. Let me walk you through the setup.
On the weekly chart, a long-term corrective 4th wave concluded in December 2016, marking wave (IV). Since that peak, the currency pair has exhibited a consistent bearish trend, characterized by a sequence of lower lows and lower highs over the past decade. Waves ((1)) and ((2)) of I of (V) concluded at the low of December 2023 and the peak of April 2024, respectively.
Following the high of April 2024, the pair has sharply declined to new lows, even breaching the low of ((1)) to initiate wave ((3)), with targets ranging from 0.6969 to 0.6270. Given this outlook, traders should anticipate further price declines in the near future. In such established bearish sequences, we focus on selling the rebounds from the blue box. Traders have successfully profited from the blue boxes shared for this pair in recent months. The most recent blue box was shared on February 23, 2026, as illustrated in the chart below.
USDCHF Blue Box Sell Setup – 2/23/2026
On 23rd February, 2026 we identified a corrective bounce against the long term bearish sequence. This is our typical ‘bread and butter’ setup. Thus, we shared the chart above with members showing the blue box where they can go short on this pair. We didn’t just alert members with this chart, we also discussed the setup in the live trading room and added the trade to our journal. This way traders can monitor the setup from trigger to exit.
USDCHF Blue Box Sell Setup – 3/08/2026
After nearly two weeks, the trade was triggered at the blue box. The pair swiftly declined, reaching the first target of over 100 pips. Traders took partial profits at the first target and are now holding the second part of the trade with the stop loss adjusted to the top of the blue box. This allows the trade to run risk-free, enabling traders to anticipate further profits while utilizing the risk on this trade elsewhere.
You can get similar analysis and blue boxes across all time frames on the 78 instruments we currently cover.
Source: https://elliottwave-forecast.com/forex/usdchf-delivers-profit-bearish-sequence/