Elliott wave Analysis: USD/CHF looking bullish

Elliott wave Analysis: USD/CHF

The U.S. dollar/Swiss franc (USD/CHF) currency pair completed a three-wave decline within wave Y as part of a bigger complex correction after recent very strong and impulsive reaction up to 1.000 level. Also notice that pair took out the corrective channel line so there is a chance that pair will continue back above 1.0340 area, maybe even this year, but after wave 2 pullback which would ideally seek for a support at that broken trendline.


USD/CHF, Daily
 

Now looking at the 4h chart, we can see that USD/CHF is moving to the upside and is showing evidence of a bullish impulse. We see pair making a five-wave rally up from 0.9432 level which can be an extended blue wave three that may find a temporary resistance and a turn lower into a correction from here around 1.000/1.0100 area.

Support for wave iv may later be seen around the lower channel line.


USD/CHF, 4-hour

 

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.