USD/CHF Elliott Wave
For the last few days the USD/CHF pair was trading in a downward move developing impulsive 3 wave (coloured blue) of the bigger (3) wave (coloured green). Yesterday during the European and New York sessions we could observe an ascending movement from 0.9696 towards the 0.9751 and we can consider this move as the end of the corrective wave (2) (coloured purple). At the moment this major pair is at the beginning of the impulsive (3) wave (coloured purple) of the bigger 3 wave (coloured blue) and we are expecting to see the price at 0.9575 level 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 (0.9809-0.9696-0.9751) with Take Profit 1 at 0.9642 (100% of wave 1) and Take Profit 2 at 0.9574 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 0.9809 as Stop Loss. Also it is necessary to monitor the U.S. Core CPI m/m, CPI m/m, Empire State Manufacturing Index, TIC Long-Term Purchases, Capacity Utilization Rate, Industrial Production m/m and Crude Oil Inventories data that can change the rate of the pair.
Support and Resistance
(S3) 0.9677 (S2) 0.9698 (S1) 0.9711 (PP) 0.9731 (R1) 0.9752 (R2) 0.9765 (R3) 0.9785
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9730 with Stop Loss 0.9809, Take Profit 1 0.9642, and Take Profit 2 0.9574 are recommended.