USD/CHF Elliott Wave
From the beginning of March the USD/CHF pair was trading in an upward move developing impulsive wave 1 (coloured purple). If we take a look at 6 hours chart, we can count 5 completed waves so now we need to be prepared for a next few weeks. Yesterday the USD/CHF pair was trading in a downward move and we think this is a start of the corrective (A) wave (coloured orange) of the bigger wave 2 (coloured purple).In accordance with our wave rules and taking into account that the wave 2 usually retraces 61.8% of the wave 1, we can define the potential targets with Fibonacci retracements (0.8930-0.9973) with Take Profit 1 at 0.9459 (50% of wave 1) and Take Profit 2 at 0.9327 (61.8% of wave 1). Resistance at 1.0000 level can be used as Stop Loss. Also it is necessary to monitor the U.S. Core Durable Goods Orders m/m, Unemployment Claims, Durable Goods Orders m/m, Pending Home Sales m/m and Treasury Sec Geithner Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 0.9809 (S2) 0.9846 (S1) 0.9868 (PP) 0.9904 (R1) 0.9941 (R2) 0.9963 (R3) 0.9999
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9860 with Stop Loss 1.0000, Take Profit 1 at 0.9459 and Take Profit 2 at 0.9327 are recommended.