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Wave analysis of the USD / CHF currency pair for May 16, 2018

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Analysis of wave counting:

During the yesterday's trading, the currency pair USD / CHF was unable to determine the direction of the movement, remaining until the end of the day near the level of price parity. It can be assumed that the currency pair tried to complete the formation of the wave 2 and denote the beginning of the wave 3, 1, C, (2), A, (B). At the same time, the overall strengthening of the dollar in the currency markets can allow the currency pair to further complicate the internal wave structure of the wave c, c, B, (2), A, (B) and resume the growth of quotations, at least to the level of 1.0100.

The objectives for the option with purchases:

1.0064 - 76.4% of Fibonacci

1.0100 - 1.0150

The objectives for the option with sales:

0.9896 - 61.8% of Fibonacci

0.9761 - 50.0% of Fibonacci

General conclusions and trading recommendations:

The currency pair supposedly completed the construction of the wave c, c, B, (2), A, (B). Thus, I recommend now to sell the pair with targets near the estimated mark of 0.9896, which is equivalent to 61.8% of Fibonacci, within the first wave of the future wave 1, C, (2), A, (B). I recommend to start buying the pair in the case of a successful attempt to break through the mark of 1.0064, which corresponds to 76.4% of Fibonacci, with targets in the range of 1.0100 - 1.0150, which will complicate the internal structure of wave B, (2 ), A, (B).

The material has been provided by InstaForex Company - www.instaforex.com