USD/CHF - A Bottom in Place

USD/CHF Prepared to Rally

An important low may be in place at 1.2027. The Elliott Wave structure at multiple degrees of trend combined with Fibonacci support and the JPercentile indicator all point to a turn higher. Risk is well defined as well.

240 Minute Chart Shows the USD/CHF Turning From Fibonacci Support

The USDCHF rally from 1.1877 to 1.2571 traced out 5 waves, meaning that the larger trend is up. Once 5 waevs are completed, a correction should unfold in 3 waves. The correction that ensued was a complex one, known as a double zigzag (two a-b-c corrections connected with an X wave?labeled W-X-Y). Our confidence that a bottom is in place is improved due to the fact that the pair turned up from the 78.6% Fibonacci level of the 1.1877-1.2571 rally. Additionally, the JPercentile indicator has turned higher from 0%. The rally beginning now should eventually take out the January high at 1.2571.

The 15 Minute Chart Confirms the Turn

Markets are fractal, meaning that they exhibit the same patterns at all scales. The patterns of smaller scale link together to form the same patterns of the next larger scale. The 5 wave advance from 1.2027 to 1.2160 is most likely just the first 5 wave advance in a larger 5 wave advance?and so on. 1.2107 is initial risk but the bullish structure is intact as long as 1.2027 is not breached. An initial target is the 161.8% extension of 1.2027-1.2160 / 1.2107 at 1.2322. As mentioned above, we look for this rally to eventually extend through 1.2571.