FX.co ★ USD/CHF Wave Analysis. Weekly Forecast

Wave Analysis:

The test of figure 95 was unsuccessful. Last week during trading session the USD/CHF pair reversed 100 basis points from the high. Thus, current parity between waves a and c of the assumed up correctional level, which is developing from the low of October 16, allows the pair to resume downtrend against the dollar. As the same time the price growth towards 0.9600 may lead to a rather long-term five-wave structure starts its formation.

Targets for Wave 3 or C of Uptrend:

0.9529 – 127.2% of Fibonacci
0.9598 – 161.8% of Fibonacci

Targets for New Down Wave after Wave 3 or C Built:

0.9428 – 76.4% of Fibonacci
0.9372 – 23.6% of Fibonacci

Summary and Trading Recommendations:

Last week the pair reversed trying to form down wave. It is not clear whether it was built or not. Next week the rise may continue to the levels of 0.9529 and 0.9598, which is corresponding to 127.2% and 161.8% of Fibonacci. After this wave is built (or the current price), a new down wave may start. It is not possible to say which one, but it has targets at 0.9428 and 0.9372, which is corresponding to 76.4% and 23.6% of Fibonacci. The break of the downward channel indicated that the pair was ready to start uptrend.