Once again the CHF becomes the focus of one of the Forex Films favorite trades. Once again there are multiple high probability trades waiting to be taken. The focus for highest probability is the USD-CHF and the EUR-CHF. Look at the charts and analysis below for more information.
A similar chart can be viewed on the USD-CHF Elliott Wave Analysis and a Forex Trade of the Day from last week. The pattern has progressed and it looked as if it would not reach its normal target in the area of 0.8600. It appears the weak upward retracement was a b-wave. Now that it appears this intermediate correction has completed the USD-CHF can renew the downward retracement.
In the very short term (hourly chart) the USD-CHF appears to have formed a wedge pattern. The CHF fell much more than many other currencies against the USD. This allowed the EUR-CHF pattern to complete as is shown in the chart below. If this pattern is the wedge as expected then traders can expect a sharp drop from here.
The ending diagonal is one of the highest probability setups a trader can ask for. The EUR-CHF probably completed this pattern today which allows traders to look for Swiss Franc appreciation against the Euro. The normal target for this pattern is once again the origin of the pattern which is in the area of 1.2050. Being so close to the Swiss National Bank target will probably result in a big CHF sell off following this move.