We wrote yesterday that “the USDCHF remains stuck in a tight range, so a break in either direction is likely to be violent.
The weight of evidence suggests that the break will be lower but the pattern is not especially clear.” The break appears to be underway and it is down. We have reason to suspect that the USDCHF will head to a new low. The advance from .9647 is corrective because a triangle separates the two legs. 3 wave movements are always fully retraced (in the case of a triangle or flat, the full retracement is delayed). A bearish bias is warranted against 1.0493. Look for resistance near 1.0344 (short term Fibo).
STRATEGY: Get bearish, against 1.0345, against 1.0492, target below .9647