FX.co ★ USD/CHF Wave Analysis for November 09, 2012

Wave Analysis:

During yesterday’s trading session the USD/CHF pair could not resume the upward move; it was consolidating in the range 0.9450 to 0.9480. The price tried to finish building of wave 2 in C. If it is so, the pair may reach the assumed price target for the whole wave 5 corresponding to 0.9510 in the short term. At the same time indicators demonstrate the accumulative potential for a rather long-term correctional downswing to start.

Targets for Up Wave 5 in C:

0.9471 – 200.0% of Fibonacci
0.9511 – 261.8% of Fibonacci

Targets for Down Wave D or First Wave of new Downtrend:

0.9394 – 38.2% of Fibonacci
0.9375 – 50.0% of Fibonacci
0.9356 – 61.8% of Fibonacci

Summary and Trading Recommendations:

A dynamic growth of the quotes gives a reason to assume that wave C is revised; it is probable that it completes building of its inner wave structure. Up wave C may raise quotes to the levels 0.9471 and 0.9511 corresponding to 200.0% and 261.8% of Fibonacci. After it, a building will be seen; it will be either a formation of a new down wave D or the first wave of a new downtrend with targets 0.939, 0.9375, and 0.9356, which is corresponding to 38.2%, 50.0%, and 61.8% of Fibonacci (the targets will be revised). A small channel demonstrates the continuation of uptrend; if the pair breaks it, then it points out that the pair is ready to build a down wave.