USD/CHF analysis for February 7, 2013
USD/CHF Elliott Wave
Since our last analysis the USD/CHF pair was trading downwards, corrective (B) wave (coloured red) of the bigger wave 2 (coloured purple) was developing. Yesterday during the early Asian session we could observe strong ascending movement from 0.9084 towards the 0.9149 level and we can consider this move as the end of the corrective (A) wave (coloured red). Therefore, during the European and New York sessions, when development of the (B) wave starts, this major pair starts pushing lower reaching a 0.9064 level (end of the B wave). At the moment the USD/CHF pair is trading around 0.9079 level and we are expecting to see price above 0.9200 level in the next few days. In accordance with our wave rules and taking into account that the wave C should retrace 161.8% of the wave A , we can define the potential targets with measuring wave A with take profit at 0.9248 (161.8% of wave A). To reduce the risk, we can use invalidation at 0.9029 level as stop loss.
Support and Resistance
(S3) 0.9009 (S2) 0.9044 (S1) 0.9066 (PP) 0.9102 (R1) 0.9137 (R2) 0.9159 (R3) 0.9195
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9090 with stop loss 0.9029 and take profit at 0.9248 are recommended.
The material has been provided by Instaforex Company – http://www.instaforex.com/