Analysis of wave counting:
In the course of yesterday's European session, the USD/CHF pair started with a fairly dynamic decline against the dollar and, losing about 90 pp in price, completed the day under the level of the 99th figure. At the same time, it can be assumed that the currency pair remained in the stage of formation of the 4th wave, in C, giving it the shape of an almost completed inclined triangle. If this is the case, then from the low of the past day, or after a decline to the level of 0.9850, the currency pair will resume the growth of quotations, thereby indicating the beginning of the future 5th wave, in C.
Targets for an upward wave option:
1.0080 - 1.0100
Targets for a downward wave option:
0.9886 - 50.0% by Fibonacci
0.9851 - 61.8% by Fibonacci
General conclusions and trading recommendations:
The assumed wave 3, in C is completed. The decline of quotes may continue within the wave 4 in the composition of C with targets near the estimated levels of 0.9886 and 0.9851, which equates to 50.0% and 61.8% of Fibonacci. An unsuccessful attempt to break through to the mark of 0.9886 suggests the completion of wave 4 and the inclination of the instrument to build wave 5 in C with targets above 101 figures.
