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USDCHF extended its gains in the past week, breaking through the 0.9044 swing and more importantly, moved out of a recent upward channel. This breakout (blue circle) usually occurs in the middle of a wave three out of a five wave rally.

So, if we respect the price action then the pair is now forming an important bullish reversal from the October lows. With that said, USDCHF is expected to stay in bullish mode, so the current slow and sideways price action above 0.9090 is wave 4 of 3) which means that the price is expected to rise up in wave 5 of 3) towards 0.9180-0.9190.

This bullish outlook remains valid as long as the price trades above the 0.9000 swing high because wave 4 must not move into the zone of wave 1, otherwise the wave count will become invalid.

usdchf elliott wave analysis for technical foreign exchange trading currencies November 6 2013