The Mighty CHF, close to its end...

This is a quick comparison between the weekly charts of the Eur/Usd & the Usd/Chf crosses..As both ratios have a common factor, it is only natural to expect them to move inversely..However a closer look in the area's circled shows the deviation in the correlation, mainly due to the excessive strength of the Chf seen the last few weeks...The acceleration of the move over the last few days, indicates that a change of trend is near.

Weekly comparison btw Eur/Usd  &  Usd/Chf

From the highs of 1.81 in 2001, theUsd/Chf cross has been in a powerful bear market for over 10 years now.. For long term players, getting in now is a no brainer. Just take a position and wait. The US $ is not going to disappear anytime soon. For short term players, i will try and fine tune a better entry point.

Elliot Wave Count



The 4th wave of this downmove formed a bearish triangle or wedge (which is a continuation pattern). The target of this wedge is outlined with the purple lines.. According to this method, the low we saw yesterday of around 76.1 should be enough for a sustained bounce and change in trend, but in all honesty, i am not convinced we have seen the last of this downmove. Nevertheless, opening a small long position at these levels with a stop just below 76 is not a bad idea..just in case..



Classical Textbook Triangle target

Finally, the level im betting on to cap this monster of a move..There's a good chance we might never get there, but im putting it out here just in case.. If its going to happen, id expect it to happen during August, maybe even within the 10 days or so..