So far this week, USD/CHF has shown a strong rebound following the spike to the downside last Friday when US jobs data came out slightly higher than expected. However, we viewed this move as only a temporary reaction, as the USDCHF pair had been trading at strong support.
From an Elliott Wave perspective, this drop was tracked as a three-wave correction, suggesting it was part of a broader uptrend. The potential for a continuation higher was supported by the incomplete Elliott Wave bullish pattern and the presence of an unfilled gap near recent highs, which remains unfilled today.
The Swiss National Bank’s surprising 50 basis point rate cut further bolstered the pair’s bullish outlook. The SNB chairman also hinted that additional rate cuts could be on the table heading into 2025, adding to the Swiss franc’s weakness.Technically, the break above channel resistance signals that a fifth wave is underway, potentially targeting the 0.90–0.91 area. This zone could mark a limited upside later this month or in early January when the broader US dollar cycle may conclude as Trump takes office.
Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.
By using Wavetraders website, any services, products, and content contained here, you agree that use of our service is entirely at your own risk. You understand that there is a very high degree of risk involved in trading on the markets. We assume no responsibility or liability for your trading and investment results. The charts, and all articles published on www.wavetraders.com are provided for informational and educational purposes only!
By using the information and services of www.ew-forecast.com you assume full responsibility for any and all gains and losses, financial, emotional or otherwise, experienced, suffered or incurred by you.
Recommended Content
Editors’ Picks
EUR/USD: Pressuring recent highs after soft US PPI figures
EUR/USD extends gains towards the 1.0300 region in the American session, helped by a better market mood. The United States Producer Price Index rose by less than anticipated in December, supporting the case of an on-hold Federal Reserve throughout the first half of the year.
GBP/USD weak below 1.2200 amid UK bond market concerns
GBP/USD retains its weak tone, trading sub-1.2200. The Pound Sterling lost ground amid another run in UK Gilt yields, reflecting the bond market instability. The US Dollar remains unattractive after December PPI figures.
Gold pressures intraday highs as mood sours
XAU/USD is finding a floor for now to bounce off after its sluggish Monday performance when Federal Reserve (Fed) policy rate concerns took over sentiment, recovering slightly and trading near $2,670 on Tuesday.
Bitcoin recovers after retesting $90K support
Bitcoin’s price recovers and trades at around $95,500 on Tuesday after dipping below $90,000 the previous day. The recent downturn at the start of the week has liquidated over $734 million in total liquidations, more than $152 million specifically in BTC.
Small business optimism shoots up in December
Small business sentiment continued to improve in December alongside greater economic and public policy certainty. The NFIB Small Business Optimism Index rose 3.4 points to 105.1, reaching its highest level since October 2018.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.