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18.05.2018 10:05 AM
Wave analysis of the USD / CHF currency pair for May 18, 2018

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Analysis of wave counting:

Despite the existing prerequisites, during the yesterday's trading, the currency pair USD / CHF was not able to determine the direction of the movement, remaining until the end of the day within a narrow price range near the level of price parity. At the same time, it seems that the currency pair will still complicate the wave c, B, (2), A, (B), giving it the appearance of a full five-wave structure. If this is so, then after the completion of the formation of the wave 4, c, B, (2), A, (B), the currency pair may resume the growth of quotations, at least to the level of 1.0100.

The objectives for the option with purchases:

1.0064 - 76.4% of Fibonacci

1.0100 - 1.0150

The objectives for the option with sales:

0.9896 - 61.8% of Fibonacci

0.9761 - 50.0% of Fibonacci

General conclusions and trading recommendations:

The currency pair can complicate the wave c, c, B, (2), A, (B), but now there are no signs of renewing its construction yet. Thus, I recommend now to sell the pair with targets near the estimated mark of 0.9896, which is equivalent to 61.8% of Fibonacci, within the first wave of the future wave 1, C, (2), A, (B). I recommend to return to the pair purchases in case of a successful attempt to break through the level of 1.0064, which corresponds to 76.4% of Fibonacci, with targets in the range of 1.0100 - 1.0150, which will be confirmed by the resumption of the construction of wave B, (2), A, (B).

Chin Zhao,
Analytical expert of InstaForex
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