USDCHF fell to a new low in this week but now reversing sharply to the upside so we suspect that pair has bottomed after five waves down in wave (c). With that said, pair could continue higher in days ahead if we consider an ending diagonal on a daily chart where each leg is made by three waves! However it would too soon to confirm bullish view on USDCHF as long as 0.9076 level is in place. We need an overlap with this level to invalidate alternate scenario of blue wave (iv) as labeled on the chart.
On USDCHF we can count five waves up with decreasing momentum in recent trade based on the MACD, so we assume that pair is in fifth wave. If that is the case then three wave retracement will follow, back to 0.8935 zone from where we would expect a new bounce to the upside.
Written by www.ew-forecast.com