Elliott Wave Setup video done on 11.11.2014 (that we published live at our home page before we switched to the new version)
We take a look at USDCHF pair which has a bullish trend in 1 hour, 4 hour and daily time frames. There is enough number of swings to call bullish cycle completed in 4 hour time frame but it hasn’t given us any confirmation that it’s over. At Elliottwave-Forecast.Com we don’t like to pick tops or bottoms, instead we forecast and trade sequence of the market. Pair did 3 waves to 0.9613 followed by a bounce to 61.8 % retracement of the decline from 0.9741 and has turned lower again. Best reading of shorter cycles and market correlation calls for pair to trade lower into 0.9572 – 0.9541 area in 7 swings before it turns higher again. We don’t like selling the pair and expect buyers to appear in above area as far as price stays above 0.9492 low. Expectations would be for rally to resume to new highs above 0.9741. Worst case scenario would be another 3 wave bounce which allow traders to get into a risk free position.