USD/CHF Elliott Wave
Since our last analysis the USD/CHF pair was trading in an upward move, developing final 5 wave (coloured blue) of the bigger wave (3) (coloured green). Yesterday during the Asian and European sessions we could observe a descending movement towards the 0.9556 level (new daily low). Therefore, during the New York session the USD/CHF pair did not manage to hold this level and the price started pushing higher reaching high at 0.9615 level. At the moment this major pair is developing final 5 wave (coloured blue) and we are expecting to see the price around 0.9450 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 (0.9660-0.9538-0.9634), with Take Profit at 0.9457 (161.8% of wave 1). To reduce the risk, we can use resistance point at 0.9560 level as Stop Loss. Also it is necessary to monitor the U.S. Chicago PMI, Revised UoM Consumer Sentiment, Fed Chairman Bernanke Speaks, Factory Orders m/m, Jackson Hole Symposiu data that can change the rate of the pair.
Support and Resistance
(S3) 0.9533 (S2) 0.9556 (S1) 0.9570 (PP) 0.9592 (R1) 0.9615 (R2) 0.9629 (R3) 0.9651
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9550 with Stop Loss 0.9560 and Take Profit 0.9457 are recommended.