USD/CHF Elliott Wave
Since our last analyses the USD/CHF pair was trading upwards, impulsive wave 5 (coloured blue) of the bigger wave (3) (coloured green) was developing. Yesterday, During the Asian session we could observe descending movement from 0.9419 towards the 0.9392 level and we can consider this movement as the end of the wave 4 (coloured blue). Therefore, during the European and New York sessions this major pair did not manage to hold this level and the price started pushing higher reaching a new high at 0.94321 level. We can consider this movement as the end of the sub-wave (1) of the (3) wave (coloured pink). At the moment the USD/CHF pair is trading around 0.9429 level and we expect to see the price above the 0.9485 area in the next few sessions. In accordance with our wave rules and taking into account that the wave 3 should retrace 261.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 0.9486 (261.8% of wave 1). To reduce the risk, we can use support at 0.9392 level as stop loss.
Support and Resistance
(S3) 0.9371 (S2) 0.9386 (S1) 0.9396 (PP) 0.9411 (R1) 0.9426 (R2) 0.9436 (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 0.9430 with stop loss 0.9392 and take profit at 0.9486 are recommended.
