USD/CHF Elliott Wave
Since our last analysis the USD/CHF pair was trading in aт upward move developing corrective wave A (coloured blue) of the bigger wave (2) (coloured green). During the yesterday’s European session we could observe an ascending movement towards the 0.9798 level. Therefore, during the first half of the New York session this major pair continued trading in a bullish mood and price reached 0.9822 level. We can consider this move as the end of the corrective A wave (coloured blue). Yesterday during the second half of the NY session and today in the course of the Asian one the USD/CHF pair retraced to the 0.9771 level (end of the B wave) and we are expecting to see price around 0.9870 today. In accordance with our wave rules and taking into account that the wave C retraces 100% of the wave A, we can define the potential targets with Fibonacci extensions (09695-0.9822-0.9771) with Take Profit at 0.9870 (100% of wave A). Support at 0.9770 can be used as Stop Loss. Also it is necessary to monitor the U.S. Core PCE Price Index m/m, Employment Cost Index q/q, Personal Spending m/m, S&P/CS Composite-20 HPI y/y, Chicago PMI, CB Consumer Confidence and Treasury Sec Geithner Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 0.9705 (S2) 0.9736 (S1) 0.9755 (PP) 0.9787 (R1) 0.9818 (R2) 0.9837 (R3) 0.9869
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9800 with Stop Loss 0.9770 and Take Profit at 0.9870 are recommended.