USD/CHF: Wave analysis and forecast for 18/01/2019 – 25/01/2019

The pair USD/CHF is still likely to fall. Estimated pivot point is at a level of 1.0006.

Main scenario: short positions will be relevant from corrections below the level of 1.0006 with a target of 0.9618.

Alternative scenario: breakout and consolidation above the level of 1.0006 will allow the pair to continue the rise up to the levels of 1.0122 – 1.0256.

Analysis: The first wave of senior level 1 of (3) has been formed on the daily time-frame and the downward correction 2 of (3) is developing now. On H4 timeframe, presumably the local ascending correction of junior level B of (2) has finished forming in the form of a zigzag and the wave С of (2) continues developing. On the H1 time frame, apparently, the third wave iii of C finished forming and a local ascending correction iv of C is nearing completion at the moment. If this assumption is correct, the pair will continue to drop to 0.9618 once the correction is completed. The level 1.0006 is critical in this scenario.