USD/CHF Elliott Wave
Last week the USD/CHF pair was trading in an upward move until Thursday when (2) wave (coloured green) finished and we could observe price going lower on Friday when the development of the impulsive (3) wave starts. During the Friday's European session we could observe a descending movement from 0.9870 towards 0.9770 level. Therefore, during the early New York session this major pair continued trading in a bearish mood and price reached a new low at 0.9695 level. Today price started pushing higher but we are expecting to see it around 0.9450 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 (0.9972-0.9695-0.9897) with Take Profit 1 at 0.9620 (100% of wave 1) and Take Profit 2 at 0.9450 (161.8% of wave 1). To reduce the risk, we can use Resistance point at 0.9770 as Stop Loss. Also it is necessary to monitor the U.S. Fed Chairman Bernanke Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 0.9578 (S2) 0.9646 (S1) 0.9688 (PP) 0.9756 (R1) 0.9824 (R2) 0.9866 (R3) 0.9934
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9700 with Stop Loss 0.9770, Take Profit 1 0.9620, and Take Profit 2 at 0.9450 are recommended.