FX.co ★ USD/CHF for February 6, 2013

USD/CHF Elliott Wave
Since our last update the USD/CHF pair was trading upwards like we expected, corrective wave 2 (coloured purple) of the bigger (3) wave (coloured blue) was developing. Yesterday during the European session we could observe descending movement from 0.9115 toward 0.9071 level. Therefore, during the New York session this major pair continued trading in a bearish mood and the price reached 0.9055 level. At the moment the USD/CHF pair is trading around 0.9130 level and we are expecting to see the price around 0.9250 level soon. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1 we can define the potential targets with measuring wave 1 with take profit at 0.9251 (61.8% of wave 1). To reduce the risk, we can use invalidation at 0.9029 level as stop loss.

Support and Resistance
(S3) 0.9047 (S2) 0.9063 (S1) 0.9073 (PP) 0.9090 (R1) 0.9106 (R2) 0.9116 (R3) 0.9133

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9160 with stop loss 0.9251 and take profit at 0.9029 are recommended.