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USD/CHF Elliott Wave Since our last analysis the USD/CHF pair was trading in a upward move finishing corrective (4) wave (coloured purple) of the bigger 3 wave (coloured blue). Yesterday during the early European session we could observe a descending movement towards the 0.9580 and we can consider this move as the end of the B wave of the bigger (4) wave (coloured purple). Therefore, during the New York session the USD/CHF pair start pushing higher when developing the final C wave. At the moment we can observe the start of the final 5 wave (coloured purple) of the bigger 3 wave (coloured blue) and we can expect to see price around 0.9416 soon. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci Extensions (0.9798-0.9699-0.9767), with Take Profit at 0.9416 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 0.9696 level as Stop Loss. Also it is necessary to monitor the CHF Employment Level and U.S. S&P/CS Composite-20 HPI y/y, CB Consumer Confidence data that can change the rate of the pair.
Support and Resistance (S3) 0.9566 (S2) 0.9579 (S1) 0.9588 (PP) 0.9601 (R1) 0.9614 (R2) 0.9623 (R3) 0.9636
Trading Forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9600 with Stop Loss 0.9696 and Take Profit 0.9416 are recommended.
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