USD/CHF for a correction?
Today, the Euro reached parity with the Dollar for the first time in 20 years, this means that all Dollar-denominated pairs have now reached critical levels and a small correction at least is needed.
From a technical perspective, the price is currently trading inside a beautiful rising wedge formation which is a reversal pattern for a downside correction. Additionally, USD/CHF looks like it has finished 5 waves up (intermediate cycle), hence a correction is pretty much expected.
Our first target for this trade will be 0.9708. Breaking below this level will push the price towards retesting the previous wave (iv) at 0.9683. If the price breaks 0.9683, 0.95000 may become next, but for now, let's focus on 0.9683.
Goodluck!
M.Y.
From a technical perspective, the price is currently trading inside a beautiful rising wedge formation which is a reversal pattern for a downside correction. Additionally, USD/CHF looks like it has finished 5 waves up (intermediate cycle), hence a correction is pretty much expected.
Our first target for this trade will be 0.9708. Breaking below this level will push the price towards retesting the previous wave (iv) at 0.9683. If the price breaks 0.9683, 0.95000 may become next, but for now, let's focus on 0.9683.
Goodluck!
M.Y.
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