Wednesday, July 30, 2008

July 30, 2008; Swissy About to Fall

The USD/CHF, and dollar in general looks due for at least a corrective pullback. I'm short the USD/CHF at 1.0500 with a profit target of 1.0355 which is the apex of the prior 4th wave (see chart). Also notice that the 5th wave has a bearish divergence with the MACD and stocastics (yellow lines). Bearish divergence on momentum indicators is typical of 5th waves. Now that 5 waves are complete, at least a correction is due. Usually waves return to the prior 4th wave area so that's why my profit target is at the 1.0355 level.

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