USDCHF successfully moved through the falling trend-line of a corrective channel which is the first indication for a completed wave 4 at 0.9438 and wave 5) underway. We expect an impulsive bearish price action through September’s lows and ideally a move towards 0.9100 projected fifth wave target.
USD CHF Elliott Wave Analysis – Click image to enlarge
In fact, on a weekly chart we can clearly see that the trend has turned bearish after a break through the rising trend-line in the middle of this summer.
As such, we are looking lower and searching for set-ups in a direction of a current trend and sentiment makes sense. We will be on radar for the short set-ups all the way towards 0.8900 support back from February 2012.
USD CHF Elliott Wave Analysis – Click to enlarge