USDCHF seems to have completed its rally (Wave 1) as bulls take out resistance around 0.9200 mark. Bulls seems to be in control and should be poised to push further after a corrective drop. Potential remains for a push through 0.9500 mark over the next few weeks.
USDCHF probable wave counts are as follows: The currency has completed a corrective drop A-B-C from 0.9900 to 0.9000 levels since March 20, 2020. Also note that above drop could be a part of a double zigzag of higher degree.
If the above proposed wave structure holds well, the next probable move could be higher towards 0.9900 levels at least, if not higher. Also note that USDCHF should ideally stay above 0.9000 handle, going further.
Immediate resistance is now seen towards 0.9250, followed by 0.9450; while support is seen through 0.9000 levels respectively. Since past resistance at 0.9200 has been taken out already, bulls are looking poised to remain in control from here.
Looking further into the lower degree wave counts, the rally between 0.9000 and 0.9200 might have unfolded into 5 waves, hence impulse. Ideally, USDCHF should produce a 3 wave corrective drop from here, before resuming higher towards 0.9500 mark.
Traders might be preparing to go long again around 0.9080/0.9100 potential support zone. Protective stop might go below 0.9000 handle, while projected targets as 0.9500 and above. Only a break below 0.900 would delay matters further.
Technical Analysis Team
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