Analysis of wave counting:
During yesterday's European session, the USD/CHF pair began with a downward movement and, losing more than 50 pp, at the end of the day fairly confidently fixed under the level of price parity. The resulting wave situation makes it possible to assume that the currency pair still remained in the stage of formation of the 4th wave, in C, which, however, can take a much more complicated form. If this is the case, then the currency pair may have good prospects for continuing the decline in quotes to 0.9920, or even under the level of the 99th figure.
Targets for an upward wave option:
1.0080 - 1.0100
Targets for a downward wave option:
0.9966 - 23.6% by Fibonacci
0.9922 - 38.2% by Fibonacci
General conclusions and trading recommendations:
The assumed wave 3, in C can be completed. If this assumption is correct, then the decline of quotes will continue within the wave 4 in the composition of C with targets near the estimated levels of 0.9966 and 0.9922, which is equivalent to 23.6% and 38.2% of Fibonacci. Wave 3, in C may further complicate its internal structure with targets that are above the price parity. In favor of this option, it can be assumed it would require two unsuccessful attempts to break through the mark of 0.9966.
