USD/CHF Elliott Wave
Last week the USD/CHF pair was trading upwards, impulsive wave 3 (coloured blue) of the bigger (3) wave (coloured green) was developing. During the Friday’s Asian and European sessions we could observe strong ascending movement from 0.9350 towards the 0.9463 level and we can consider this movement as the end of the wave 3 (coloured blue). Therefore, during the New York session when development of the wave 4 (coloured blue) started this major pair has retraced back to 0.9421 level. At the moment the USD/CHF pair is trading around 0.9432 level and we expect to see the price below 0.9405 level soon. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 0.9392 (38.2% of wave 3). To reduce the risk, we can use resistance at 0.9465 level as stop loss.
Support and Resistance
(S3) 0.9304 (S2) 0.9347 (S1) 0.9373 (PP) 0.9415 (R1) 0.9458 (R2) 0.9484 (R3) 0.9526
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9420 with stop loss 0.9465 and take profit at 0.9392 are recommended.
