Wave analysis:
Yesterday’s fall in price of USD/CHF currency pair to the level close to figure 93 has probably cancelled the possibility of development of the wave situation that was supposed to resume the formation of ascending trend. If that is true, then the currency pair continues its movement within the borders of a very complicated and continuous corrective structure with characteristics of diagonal triangle. Moreover, it seems that yesterday’s descending movement is taking place within the borders of a C-wave of the triangle developing in direction of potential targets located near 0, 9400 – 0, 9355 positions.
Targets for development of the variant with wave:
0,9401 – 127,2% according to Fibonacci
0,9356 – 161,8% according to Fibonacci
Targets for development of the ascending movement:
Not identified
General conclusions and trading recommendations:
It seems that on Thursday the scenario with formation of ascending part of a trend was cancelled. Instead there is a possibility of forming 3-wave corrective structure. The objectives for this part of trend are levels of 0, 9401 responding to 127, 2% of Fibonacci and 0, 9356 which is equal to 161, 8% of Fibonacci’s percentage. The planned MACD convergence can start its development in the nearest future and make an attempt to raise the currency pair. In general the situation with franc is getting more and more complicated every day, forming non-standard wave structures that create difficulties while decision-making concerning market entry.
