Swiss franc has been acting very strong for the past few days, since majors, such as Euro, Pound and Australian dollar found support against the US dollar. Notice that Usd/Chf reversed sharply on the downside at the end of a trading week, as pair was unable to gain above the daily falling channel resistance line. As such, bears are back and fully in progress, now targeting 0.8300 region.
Guest post by Gregor Horvat
You may notice that we are looking at the line chart, which shows more clarity and no overlap between waves (1) and (4). So, if we are correct, then final leg, wave (5) of wave III is now in process which may slow down somewhere around the support channel line. If this trend line is broken powerfully with daily close well below it, then losses will likely extend even below 0.8! ALT count prepared for that scenario!
Usd/Chf Daily chart:
As we can see on the 4h chart, losses on Usd/Chf accelerated once pair moved below 0.8763 intra-day swing and more importantly, fell below base channel support line, which we know is a very strong indication of a third wave of an impulse. With this being said, even lower levels are now in view for this week, where any near-term bounce, should be only temporary and corrective, before downtrend resumes.
Bias is to the downside as long as the market trades below 0.8763 critical/invalidation region.
Usd/Chf 4h chart:
Price action on Usd/Chf should be very interesting this week, with pattern that may offer some opportunities within this bearish sequence. For more Elliott Wave forecasts, visit our website here
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