Analysis of wave counting:
Despite the strong enough divergence of MACD, during the trades of the last week, the pair USD / CHF continued the development of the upward movement and managed to break through the level of the 98th figure on Friday. It can be assumed that the currency pair was in the stage of formation of the wave a, (C), in which its internal wave c is nearing its completion. If this is the case, then working out the 0.9900 level can trigger a significant price rebound, which in turn will mark the beginning of wave b, in this supposed (C).
The objectives for an upward wave option:
0.9801 - 76.4% of Fibonacci
0.9900 - 1.0000
The objectives for a downward wave option:
0.9700 - 0.9600
General conclusions and trading recommendations:
The wave counting of the instrument is complicated, and the wave C, C, (B) is supposedly completed. The lowering of quotations may still resume with targets near the 0.9388 mark, which is equivalent to 161.8% of Fibonacci and below about 92 figures, if the wave e, C, C, (B) become even more complicated. More likely developments will be a further increase in quotations within the first wave as part of the future (C) with goals located between 98 and 100 figures. The MACD divergence warns of the readiness of the instrument to construct a corrective wave.
