Analysis of wave counting:
After failing to determine the direction of the movement, the USD/CHF pair remained within a very narrow range in the entirety of the previous day, limited by the level of the price parity and the mark of 0.9980. At the same time, it can be assumed that the currency pair was still in the stage of formation of the 4th wave, in C, which could take a rather complex form and extended horizontal correction in time. If this is the case, then, practically from the current price values, or after the drop to the area of 0.9920, the currency pair will resume the rise of quotes and thereby mark the beginning of the 5th wave, in C.
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 lowering 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 order to reach this scenario, there will several unsuccessful attempts to break through the 0.9966 mark.
