USDCHF – The wave 4 corrective pullback could target 0.9600/0.9550
USDCHF has been in larger corrective uptrend since August’11 and it could test the 1.000/1.0700 resistance on multi-month basis (watch for strong 2005 monthly resistance line). The pair had completed a wave (A) at 0.9600 (Jan’12 high) and the following wave (B) was completed at 0.8930 (Feb’12 low). The current wave (C) uptrend could aim for 1.05 and above. The 0.9465/0.9420 support is critical for the uptrend followed by 0.9365.
A wave 4 setback is underway from 0.9975 with bearish divergences in daily oscillators. Downside focus is now on 0.9655. A break below would extend the pullback toward the 0.9600/0.9550 (watch the trend channel support) ahead of the strong 0.9465/0.9420 support where short term bulls would attempt to renew. The 0.9830/0.9900 resistance should cap strength in the near term. A reversal above 0.9975 however negates the near term bearish view.
