FX.co ★ USD/CHF Wave Analysis for April 23, 2012

Wave marking analysis:
On Friday the USD/CHF pair resumed the descending movement and by the end of the sessions had fixed above the level of figure 91. Therefore, we can suggest that within the corrective scenario the currency pair is forming the inner wave structure of the wave C of the whole descending movement that began its development from the high of April 16 (0.9250). If that proves to be so, then the targets for the wave C are located up to the point 0.9055 or even 0.9015. At the same time the formed MACD divergence indicates the possible completion of the current descending part of the trend.

Targets for the wave C option:
0.9061 – 76.4% according to Fibonacci
0.9031 – 88.6% according to Fibonacci

Targets for resumption of the ascending part of the trend:
0.9127 – 50.0% according to Fibonacci
0.9156 – 38.2% according to Fibonacci
0.9193 – 23.6% according to Fibonacci

General conclusions and trading recommendations:
At the moment we can see either the first waves of the new descending part of the trend or quite strong corrective structure. At the moment it is possible that the decline within the wave C of the three wave correction will continue. The current downside movement has targets at 0.9061 and 0.9031 corresponding to 76.4% and 88.6% of Fibonacci. The developed MACD convergence points at the possible reversal of quotes to upwards in the nearest future.