USD/CHF Elliott Wave
Since our last analyses the USD/CHF pair was trading upwards just like we expected, impulsive wave (3) (coloured pink) of the bigger wave 5 (coloured blue) was developing. Yesterday, during the Asian session we could observe ascending movement from 0.9401 towards the 0.9452 level. Therefore, during the European and New York sessions this currency continued trading in a bullish mood and the price reached a new high at 0.9488 level. We can consider this movement as the end of the wave (3) (coloured pink) of the bigger wave 5 (coloured blue). At the moment the USD/CHF pair is trading around 0.9470 level and we expect to see the price around 0.9510 area in the next few sessions. In accordance with our wave rules and taking into account that the wave 5 should retrace 61.8% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 0.9509 (61.8% of wave 3). To reduce the risk, we can use support at 0.9453 level as stop loss.
Support and Resistance
(S3) 0.9343 (S2) 0.9373 (S1) 0.9430 (PP) 0.9460 (R1) 0.9517 (R2) 0.9547 (R3) 0.9604
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.9475 with stop loss 0.9453 and take profit at 0.9509 are recommended.
