Guest Commentary: "Modern" Corrective Structure in USD/CHF
The current chart of USDCHF shows the pair reaching the area of equal legs at 0.8958. Now, contrary to traditional Elliott wave theory, we believe that the move off the 0.8698 low is a series of 3 waves and not an impulsive sequence.
Hence, after the completion, the pair should move in the direction of the prevailing trend, which is lower. As such, our view remains to sell the end of this rally in USDCHF, which can reach as high as 0.9019 (the 123.6% Fib extention) or 0.9032 (the C = A target).
By Eric Morera of Elliottwave-Forecast.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.