Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: The USDCHF is at the final defined level (10/5 and 10/31 lows) before the October low. In other words, if price doesn’t hold here, then there is nothing to stop a test of the October low. Not surprisingly, near term pattern is suggestive a few more legs lower in stair step fashion (small 4th and 5th waves) before we see potential for a material bounce. Strength above 9337 would create overlap and suggest that a low is in place.
FOREXTrading Strategy: Look lower as long as price is below 9337. Once again, divergence between the USDCHF and EURUSD (new USDCHF low and NOT a new EURUSD high) may mark the turn. This occurred at the October turn.
LEVELS: 9184 9213 9265 9300 9337 9392
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