USD/CHF Elliott Wave
For the last few days the USD/CHF pair was trading in an upward move developing corrective wave 2 (coloured blue) of the bigger (3) wave (coloured green). Yesterday during the European session we could observe an ascending movement towards the 0.9760 level (new 4 days high). Therefore, during the New York session this major pair continued trading in a bullish mood and price reached 0.9790 level. At the moment, the USD/CHF pair is developing a corrective C wave of the bigger 2 wave (coloured blue) and we are expecting to see the price around 0.9415 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 (0.9897-0.9656-0.9795) with Take Profit at 0.9416 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 0.9897 as Stop Loss. Also it is necessary to monitor the U.S. Import prices m/m, Federal Budget Balance data that can change the rate of the pair.
Support and Resistance
(S3) 0.9656 (S2) 0.9691 (S1) 0.9713 (PP) 0.9749 (R1) 0.9784 (R2) 0.9806 (R3) 0.9842
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9765 with Stop Loss 0.9897 and Take Profit 0.9416 are recommended.