USD/CHF Elliott Wave
Since our last analysis, 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 and first half of the New York sessions, we could observe an ascending movement from 0.9736 towards the 0.9417 level and we can consider this move as the end of the wave (4). Therefore, during the second half of the NY session this major pair did not manage to hold this level and the price started pushing lower when development of the final (5) wave (coloured green) started. At the moment, the USD/CHF pair is trading around 0.9400 level and we are expecting to see the price at 0.9140 level soon. 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 wave 1, with Take Profit at 0.9140 (100% of wave 1). To reduce the risk, we can use invalidation at 0.9500 level as Stop Loss. Also it is necessary to monitor U.S. Core Durable Goods Orders m/m, Unemployment Claims, Durable Goods Orders m/m, Final GDP q/q and Pending Home Sales m/m data that can change the rate of the pair.
Support and Resistance
(S3) 0.9343 (S2) 0.9362 (S1) 0.9374 (PP) 0.9393 (R1) 0.9412 (R2) 0.9424 (R3) 0.9443
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9380 with Stop Loss 0.9500 and Take Profit at 0.9140 are recommended.