USD/CHF Elliott Wave
Since our last analyses the USD/CHF pair was trading downwards, corrective wave (C) (coloured pink) of the bigger wave 4 (coloured blue) was developing. During the Monday's Asian session we could observe ascending movement from 0.9415 towards the 0.9439 level and we can consider this movement as the end of the wave (B) (coloured pink). Therefore, during the European and New York sessions this major pair did not manage to hold this level and the price started pushing lower reaching a new 3-day low at 0.9399 level. We can consider this movement as the end of the final sub-wave (C) of the 4 wave. At the moment the USD/CHF pair is trading around 0.9410 level and we expect to see the price above the 0.9500 area in the next few sessions. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 0.9507 (100% of wave 1). To reduce the risk, we can use support at 0.9373 level as stop loss.
Support and Resistance
(S3) 0.9385 (S2) 0.9398 (S1) 0.9405 (PP) 0.9418 (R1) 0.9431 (R2) 0.9438 (R3) 0.9451
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.9420 with stop loss 0.9373 and take profit at 0.9507 are recommended.
