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USD/CHF Elliott Wave
Last week the USD/CHF pair was trading in a downward move developing impulsive 3 wave (coloured blue) of the bigger (3) wave (coloured green). During the Friday's Asian and European sessions we could observe an ascending movement towards the 0.9620 and we can consider this move as the end of the (4) wave (coloured purple). Therefore, during the early New York session the USD/CHF pair started pushing lower when developing of the (5) wave starts (coloured purple). At the moment this major pair is developing final impulsive (5) wave of the bigger 3 wave (coloured blue) and we are expecting to see the price around 0.9415 soon. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci Extensions (0.9798-0.9699-0.9767), with Take Profit at 0.9416 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 0.9696 level as Stop Loss. Also it is necessary to monitor the U.S.FOMC Member Pianalto Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 0.9521 (S2) 0.9547 (S1) 0.9563 (PP) 0.9590 (R1) 0.9616 (R2) 0.9632 (R3) 0.9659
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9570 with Stop Loss 0.9696 and Take Profit 0.9416 are recommended.
