[B]Commentary:[/B] As has been the case, we do not have a good read on the USDCHF. The pair has traded in a diabolical whipsaw fashion for much of the summer. The long term inverse head and shoulders (bullish) pattern that we have mentioned remains intact as long as price is above 1.1877.
The decline from 1.2165 could be a diagonal (wedge) in the B position in a large A-B-C correction from 1.1960. This would suggest that wave C will exceed 1.2165 before the next leg lower occurs. This scenario is shown on the chart. [B]Strategy:[/B] Flat