USD/CHF Retraces Most of Reversal; Focus is Higher
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Wrote last update to “look for a low in the coming days from .9566 (former highs) to .9627 (5/10 high). The topside of the neckline from the completed inverse head and shoulders pattern is at about .9600. The Elliott channel for 4th wave estimation and former corrective channel also intersect at .9600 later next week. A daily close below .9520 would suggest that the breakout has failed.” Last week’s low was .9590 so we should be looking higher against that level towards new highs and the larger 1.0100 objective (inverse head and shoulders target). With the EURUSD possibly completing 5 waves down in the coming days, we could get another divergence (USDCHF above 2012 high and EURUSD above 2012 low) that marks a turn towards USD weakness.
FOREXTrading Strategy: Long against .9585, target 1.0100 (if not already long, then support is estimated from .9688 and .9720).
LEVELS: .9648 .9688 .9720 .9838 .9898 .9971
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