FX.co ★ USD/CHF analysis for January 15, 2013

USD/CHF Elliott Wave
Last week the USD/CHF pair was trading downward, corrective (C) wave (coloured green) of the bigger (B) wave (coloured red) has developed. Yesterday during the Asian and European sessions we could observe strong ascending movement from 0.9117 toward the 0.9198 level. Therefore, during the New York session this major pair continued trading in a bullish mood and the price reached a new 3-day high at the 0.9262 level. Today the USD/CHF pair is trading slightly above yesterday’s high and we expect another strong bullish movement soon. In accordance with our wave rules and taking into account that the wave C should retrace 100% of the wave A, we can define the potential targets with measuring wave A with take profit at 0.9335 (100% of wave A). To reduce the risk, we can use support at 0.9215 level as stop loss.

Support and Resistance
(S3) 0.9067 (S2) 0.9112 (S1) 0.9141 (PP) 0.9186 (R1) 0.9231 (R2) 0.9260 (R3) 0.9305

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9280 with stop loss 0.9215 and take profit at 0.9335 are recommended.