USD/CHF Trades to High For Month then Retraces 61.8% of Rally

DailyFX

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eliottWaves_usd-chf_body_usdchf.png, USD/CHF Trades to High For Month then Retraces 61.8% of Rally

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “Price has held the trendline that extends off of the October 2011, February 2013, and June 2013 lows. An intraday plot of the turn higher reveals an impulsive advance. Combined with the trendline response and push through last week’s high, there is a good start to something bigger on the upside. Also, 60 minute RSI is at its highest in at least a year. Usually, very strong momentum readings (especially short term) indicate the beginning of a larger move in that direction. Some sideways trade is in order first of course.” Rather than sideways, the USDCHF got slammed lower before finding support slightly below the 61.8% retracement of the advance from last week’s low. If price can find a low near here, then an inverse head and shoulders pattern could form.

FOREXTrading Strategy: Correction lower could be complete but not enough evidence to make a trade just yet.

LEVELS: .9174 .9200 .9244 .9310 .9246 .9396

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