USD/CHF Elliott Wave
For the last few days the USD/CHF pair was trading in a upward move, developing corrective (4) wave (coloured green) of the bigger wave (A) (coloured orange). Yesterday during the European session, we could observe an ascending movement towards the 0.9390 level. Therefore, during the early New York session this major pair did not manage to hold this level and price retraced back to 0.9354 level. At the moment, the USD/CHF pair is trading around 0.9370 level and we are expecting to see the price lower in the next few days, when development of the 5 impulsive wave starts. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring 1 wave, with Take Profit 1 at 0.9176(100% of wave 1). To reduce the risk, we can use resistance at 0.9450 level as Stop Loss. Also it is necessary to monitor the CHF SNB Chairman Jordan Speaks and U.S. S&P/CS Composite-20 HPI y/y, CB Consumer Confidence, Treasury Sec Geithner Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 0.9283 (S2) 0.9311 (S1) 0.9328 (PP) 0.9355 (R1) 0.9383 (R2) 0.9400 (R3) 0.9427
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9330 with Stop Loss 0.9450 and Take Profit at 0.9176 are recommended.