USD/CHF Completes 8 Month Reversal Pattern

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eliottWaves_usd-chf_body_usdchf.png, USD/CHF Completes 8 Month Reversal Pattern

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: An inverse head and shoulders pattern that began exactly 8 months ago (9/14/12) was confirmed today. The target from the pattern is 1.0111. In the ‘year of the breakout’, ignore such patterns at your own risk. It’s also a good sign for bulls that price was able to close above the 61.8% retracement of the decline from .9971. .9771 (78.6%) is a level that could offer minor resistance although I’m more focused on what happens around channel resistance. The top side of the broken neckline becomes support if reached…that line is at .9595 on Wednesday.

FOREXTrading Strategy: Long, stop moved up to .9520, target > .9971 – will add if price re-tests neckline near .9600.

LEVELS: .9520 .9566 .9627 .9720 .9771 .9898

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