FX.co ★ USD/CHF - Mathematical Analysis with Murray Lines for September 12, 2013

Daily chart

On daily charts, we see that USDCHF is now in its support zone after a bearish session on Wednesday, September 11.

Quoting very close to the line 4/8 (blue line), which is also the major support line, we believe that according to the principle of Elliott wave, this level would become the beginning of his 5th impulse wave that could lead prices to 0.9399 and then extend to the level of 61.8 lines Fibonacci expansion. So it may be a good buying opportunity by placing a pretty tight stop loss just 15 pips below the low reached during Wednesday's session.

H4 chart

In the 4-hour chart, we note that there has been a widening of its uptrend channel that showed us yesterday's session in the same timeframe. At the moment, the price is at line 0/8 (solid line) and it considers this as a final line which supports an opinion the trend will reverse; thus, fulfilling the 5th wave pattern we mentioned in 1-day chart.

However, it is also possible in this timeframe, we are half the length of the third impulsive downward wave, which could well last to 0.9216, where this level of -1/8 is and considered a line of overrun end. Also the price would have to break the baseline trend channel, which would be a new widening of the channel. In this second scenario placing a stop at 0.9269 would help us to avoid a losing position.

30-Minute chart

The 30-minute chart, similarly shows USDCHF is in the oversold zone today, because after moving from the area of the line +2/8 it has been stopped at the yellow line of 1/8 Murrey lines, which could be an indication that the trend will be reversed and there will be a change of direction in the medium term. This could lead the Swiss franc to give ground, at least, to 0.9338, so our preference continues to be taking the position of the bulls without forgetting to place our stop loss around 0.9269.

If you have any questions or suggestions, please contact:

Email: antonio.inga@analytics.instaforex.com

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