FX.co ★ USD/CHF Wave Analysis for December 13, 2012

USD/CHF Elliott Wave

Since our last analysis the USD/CHF pair was trading in a downward move, impulsive (3) wave (coloured green) of the bigger (5) wave (coloured red) was developing. Yesterday during the European session we could observe descending movement towards the 0.9242 level and we can consider this move as the end of the 3 impulsive wave (coloured blue) of the bigger (3) wave (coloured green). Therefore, during the New York session the USD/CHF pair did not manage to hold this level and the price started pushing higher reaching 0.9272 level. We can consider this move as the end of the 4 wave (colorured blue). At the moment this major pair is developing final 5 wave of the bigger (3) wave and we expect to see the price higher today when development of the (4) wave starts. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9283 (38.2% of wave 3). To reduce the risk, we can use support at 0.9200 level as stop loss.

Support and Resistance

(S3) 0.9145 (S2) 0.9194 (S1) 0.9228 (PP) 0.9277 (R1) 0.9311 (R2) 0.9360 (R3) 0.9394

Trading Forecast

Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9230 with stop loss 0.9200 and take profit at 0.9283 are recommended.