USD/CHF: Bulls still gaining momentum, more upside in view

November 16, 2015 08:58 AM

The U.S. dollar and Swiss franc (USD/CHF) have been moving sideways since end of March with five swings between two trendlines that reminds us on a triangle formation. That's an A-B-C-D-E pattern that occurs in the direction of a trend, so it's a continuation formation that suggests more upside for USDCHF. In fact this bullish trend is already continuing now after recent break above the upper resistance line. Move from the last three weeks is also sharp, so we see pair going to new highs and even up to 1.0400-1.0500 projection in months ahead.

USD/CHF, Daily

On the lower time frame, USD/CHF was in pullback last week but it still trades around the highs so strong uptrend remains in play. We see pair in wave III that can be targeting 1.0160; 261.8% Fibonacci extension level of wave II. Any surprise and bearish turn back beneath 0.9940 will suggest that market is in a corrective retracement of a higher degree. But at the moment, we stay bullish; looking straight up.

USD/CHF, 4H

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/