FX.co ★ USD/CHF Wave Analysis for September 17,2012

USD/CHF Elliott Wave
Last week the USD/CHF pair was trading in a downward move, developing impulsive 5 wave (coloured blue) of the bigger wave (3) (coloured green). During the Friday's early Asian session we could observe a descending movement from 0.9356 towards the 0.9312 level. Therefore, during the European and New York sessions this major pair continued trading in a bearish mood reaching a new low at 0.9237 level and we can consider this move as the end of the 5 wave (coloured blue). At the moment, the USD/CHF pair is developing corrective (4) wave (coloured green) and we are expecting to see the price around 0.9440 level soon. In accordance with our wave rules and taking into account that the wave 4 should retrace 100% of the wave 2, we can define the potential targets with measuring 2 wave, with Take Profit at 0.9442 (100% of wave 2). To reduce the risk, we can use invalidation at 0.9238 level as Stop Loss.
Support and Resistance
(S3) 0.9170 (S2) 0.9215 (S1) 0.9243 (PP) 0.9288 (R1) 0.9333 (R2) 0.9361 (R3) 0.9406
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9300 with Stop Loss 0.9238 and Take Profit at 0.9442 are recommended.