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USD/CHF Elliott Wave
Since our last analysis the USD/CHF pair was trading in an upward move, impulsive (1) wave (coloured green) of the bigger (A) wave (coloured red) was developing. Yesterday during the Asian session we could observe descending movement from 0.9133 toward the 0.98081 level and we can consider this move as the end of the 1 wave (coloured purple). Therefore, during the European and New York sessions when development of the 2 wave (coloured purple) started this major pair started pushing higher reaching a new daily high at 0.9155 level and we can consider this move as the end of the (1) wave (coloured green). At the moment the USD/CHF pair is trading around 0.9127 level and we are expecting to see the price higher when development of the (3) wave start (coloured green). In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9225 (161.8% of wave 1). To reduce the risk, we can use invalidation at 0.9081 level as stop loss.
Support and Resistance
(S3) 0.9069 (S2) 0.9088 (S1) 0.9100 (PP) 0.9119 (R1) 0.9138 (R2) 0.9150 (R3) 0.9169
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9115 with stop loss 0.9801 and take profit at 0.9225 are recommended.
