Usd/Chf recovered in five waves since August, after a very clear breakout to the upside, out of a downtrend channel, which is the most important evidence of a change in trend; from bearish to bullish.
As such, we are very confident that significant low is in place and that Usd/Chf will move even higher in coming months, towards parity. But before larger uptrend will continue, we will likely see a deeper pull-back as first impulsive leg wave I appears complete around 0.9310..
On the 4h chart below, we can see that Usd/Chf collapsed lower at the end of the past week, through the wave A support. As such, we suspect that wave B is complete around 0.9080 and that wave C is headed lower, ideally into 0.8640 zone, where also wave C equals to wave A. You may have also noticed a head and shoulders pattern, which signals for more bears ahead, after a break through the neckline.Get the 5 most predictable currency pairs