Dollar/franc readies for more gains

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The U.S. dollar/Swiss franc (USD/CHF) currency pair has made a big pullback since end of 2015 that we see it as a corrective and temporary decline. Notice that falling price action was overlapping; thus it has evidence of a contra-trend movement so we suspect that downtrend is finished now, especially after we identified an ending diagonal in wave C-circled of a big wave IV. Ideally market is now at first wave up of a new bullish cycle; three wave structure for wave V that will be looking for a move back to the highs. That said, current sharp turn down can be wave B, so blue wave C could then be an extended wave.

USD/CHF, Daily


On the lower time frame, recent decline from 0.9950 is very sharp so a temporary top in place has to be considered, especially as we can count five waves up in wave A-circled, so actually current weakness is not such a big surprise. That said, we will continue to look higher after a completion of a wave B that may find a base this week at 0.9600-0.9700 area, which may lead to a new push higher into wave C of five as suggested on the daily chart.

USD/CHF, 4-hour

Read this article in its original format at Futures Magazine

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website:

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