FX.co ★ Wave analysis of the USD / CHF currency pair for July 28, 2017

Analysis of wave counting:

As expected, at the beginning of yesterday's European session, the pair USD / CHF resumed the upward movement, adding about 170 pp in price and reached the level of 0.9660 at the end of the day. The resulting wave situation allows us to assume that the currency pair remained in the formative phase of a five-wave structure, the first wave, as part of the future wave C. If so, the apparent divergence of MACD indicates the possibility of an early start of an extended downward correction. Possibly after testing the currency pair level of the 97th figure.

Targets for an upward wave option:

0.9687 - 100.0% by Fibonacci

Goals for the downside wave option:

0.9555 - 127.2% Fibonacci ratios

0.9388 - 161.8% Fibonacci

General conclusions and trading recommendations:

The wave c, c, E, B has supposedly completed its construction. However, the lowering of quotations within the framework of this wave can still resume with the targets located near the estimated mark of 0.9388, which corresponds to 161.8% of Fibonacci, and lower. An unsuccessful attempt to break through the mark of 0.9439 led to the withdrawal of quotations from the reached minimum and the possible completion of the wave B. If this is true, then the quotes will continue to rise, but the MACD divergence warns of the tool's readiness to decline.