USD/CHF Elliott Wave
Since our last analysis the USD/CHF pair was trading in an upward move like we expected, corrective (4) wave (coloured pink) of the bigger 3 wave (coloured blue) was developing. Yesterday during the Asian and European sessions we could observe descending movement from 0.9256 toward the 0.9307 level. Therefore, during the New York session this major pair continued trading in a bullish mood and the price reached a new daily high at 0.9325 level. At the moment the USD/CHF pair is trading around 0.9309 level and we are expecting to see the price lower today 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 wave 1 with take profit at 0.9224 (100% of wave 1). To reduce the risk, we can use invalidation at 0.9358 level as stop loss.
Support and Resistance
(S3) 0.9222 (S2) 0.9249 (S1) 0.9266 (PP) 0.9294 (R1) 0.9321 (R2) 0.9338 (R3) 0.9366
Trading Forecast
Proceeding from Elliott Wave rules today, the price is expected to begin the downward movement. That is why short positions at level 0.9305 with stop loss 0.9358 and take profit at 0.9224 are recommended.