USD/CHF Elliott Wave
Yesterday we preformed a long term analysis for the USD/CHF pair and today we would like to examine a short time frame for intraday traders. Yesterday during the early European session, we could observe a strong downward move that brought this major pair to the new 6 day low at 0.9740 level. Therefore, during the New York session the USD/CHF failed to hold this level and the price started pushing higher. Today during the Asian session, the Dollar/Swiss pair was trading in a sideways move developing corrective wave 4 (coloured blue) of the bigger impulse wave (1) (coloured green) and we are expecting to see continuation of the yesterdays bearish mood. In accordance with our wave rules and taking into account that the wave 5 usually retraces 100% of the wave 1, we can define the potential by measuring 1 wave, with Take Profit 1 at 0.9688 (100% of wave 1) and Take Profit 2 at 0.9628 (161.8% of wave 1). Resistance at 0.9815 level can be used as Stop Loss. Also it is necessary to monitor the Swiss KOF Economic Barometer and U.S. Advance GDP q/q, Advance GDP Price Index q/q, Revised UoM Consumer Sentiment data that can change the rate of the pair.
Support and Resistance
(S3) 0.9640 (S2) 0.9705 (S1) 0.9744 (PP) 0.9809 (R1) 0.9874 (R2) 0.9913 (R3) 0.9978
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9755 with Stop Loss 0.9815 Take Profit 1 at 0.9688 and Take Profit 2 at 0.9628 are recommended.