USD/CHF Recovery Supported by Stock Market

Usd/Chf spiked higher on Friday and now we have five waves up from 0.8920 lows, which means that from an Elliott Wave perspective trend has changed from bearish to bullish, because impulsive structure always shows direction of a temporary trend. With this being said, we are expecting higher levels to be seen within larger three wave move, which is likely a wave (2) labelled on the chart.

However, before we may see higher levels on Usd/Chf, wave B) needs to be seen, which is unfolding now and may fall down to 0.9120 in the near future.

Guest post by Gregor Horvat

Swiss franc seems to be one of the weakest currencies for the past two weeks or so, and the reason is probably the rising stock market, which reversed on the same day as the US stocks found the support, as shown on the overlay chart below.

We see higher levels on the S&P targeting 1400, which supports the Usd/Chf.

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Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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