USD/CHF Elliott Wave
For the last few days the USD/CHF pair was trading in an upward move developing impulsive (5) wave (coloured green) of the bigger wave (5) (coloured orange). Yesterday during the Asian and European sessions we could observe an ascending movement towards the 0.9945 level and we can consider this move as the end of the 3 impulsive wave (coloured blue). Therefore, during the New York session the USD/CHF did not manage to hold this level and the price reached 0.9888 level (end of 4 wave). Today this major pair started pushing higher, the price is currently trading around 0.9915 level and we are expecting to see it around 0.9969 today. In accordance with our wave rules and taking into account that the wave 5 retraces 100% of the wave 1, we can define the potential targets by measuring 1 wave with Take Profit at 0.9963 (100% of wave 1). Support at 0.9900 point can be used as Stop Loss. Also it is necessary to monitor the U.S. Fed Chairman Bernanke Speaks, Flash Manufacturing PMI data that can change the rate of the pair.
Support and Resistance
(S3) 0.9853 (S2) 0.9877 (S1) 0.9892 (PP) 0.9916 (R1) 0.9940 (R2) 0.9955 (R3) 0.9979
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9920 with Stop Loss 0.9900 and Take Profit at 0.9963 are recommended.