Tanalys

USD/CHF Wedge Reversal a Possibility on Event Risk

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Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The pattern is the exact inverse of the EURUSD (A-B-C decline with wave C as a diagonal). If the interpretation is correct, then the wave C diagonal (from .9533) will probably be retraced quickly. It’s worth noting that the EURUSD traded to a new high while the USDCHF did not…this is typical of ‘action’ at turns.

FOREXTrading Strategy: Same as EURUSD, longs here run the risk of a spike lower on news or worse. Watch .9220 for support if new lows are registered. GBPUSD short is the better trade in European FX.

LEVELS: .9201 .9220 .9282 .9324 .9394 .9477

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