USD/CHF Elliot Wave Analysis: USD/CHF consolidates in a triangle between 0.9100 and 0.9200

• USD/CHF terminates potential Wave e of the triangle around 0.9120.
• A push above 0.9200 will accelerate toward 0.9300 as Wave 3 progresses.
• The pair is bouncing off 61.8% Fibonacci retracement of lower degree Wave i.

USD/CHF is consolidating in lower degree Wave ii, as Wave 3 is progressing above the 0.9300 mark. The triangle consolidation might have terminated wave e, around 0.9120 levels last week. If correct, the currency would attempt to break above 0.9200 resistance soon.

Looking at the larger degree wave count, USD/CHF could be progressing within Wave 3 or C (alternate count) since 0.8770 low registered on January 6, which is not seen on the chart displayed here. Medium-term wave counts are indicating potential Waves 1 and 2 in place around 0.9260 and 0.9020 respectively.

If the above structure holds well, Wave 3 could be in progress toward 0.9300 at least. Looking further into the sub-waves, lower degree Waves i and ii might have terminated around 0.9240 and 0.9120, respectively. Also, note that Wave ii unfolded as a potential bullish triangle and could push above 0.9200 in the near term.

USD/CHF bulls are looking poised to rally toward 0.9300, as Wave 3 unfolds. Also note that triangle Wave ii found support around the 61.8% Fibonacci retracement of potential Wave i. The single currency pair should stay above 0.9020 support to keep the above bullish scenario intact.

Alternate count

USD/CHF is unfolding as a corrective structure (A)-(B)-(C) at a larger degree since the 0.8770 low. Within the above structure, Waves (A) and (B) might have terminated around 0.9460 and 0.8925 (not seen on the 4H chart here).

If the above holds well, a larger degree Wave (C) could be unfolding toward 0.9300 and higher. Either way, bulls remain poised to break higher as long as prices stay above the 0.9020 mark.

Technical levels to watch