USD/CHF Elliott Wave

For the last few days the USD/CHF pair was trading in a sideways move, developing corrective wave (4) (coloured green) of the bigger wave (A) (coloured orange). Yesterday during the early European session we could observe descending movement from 0.9398 towards the 0.9354 level. Therefore, during the New York session this major pair did not manage to hold this level and price retrace back to 0.9392 level. At the moment the USD/CHF pair is trading around 0.9370 level and we are expecting to see price around 0.9160 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 0.9161(100% of wave 1), and Take Profit 2 at 0.8990 (161.8% of wave 1). To reduce the risk, we can use resistance at 0.9490 level as Stop Loss. Also it is necessary to monitor U.S. Unemployment Claims, Factory Orders m/m, and FOMC Meeting Minutes data that can change the rate of the pair.

Support and Resistance
(S3) 0.9328 (S2) 0.9347 (S1) 0.9358 (PP) 0.9377 (R1) 0.9396 (R2) 0.9407 (R3) 0.9426
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9355 with Stop Loss 0.9490, Take Profit at 0.9161, and Take Profit 2 at 0.8990 are recommended.