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Dollar-Swiss (USD/CHF): Here's How to See What's Ahead Without Watching the News
Elliott wave analysis of chart patterns helps to keep you one step ahead of the forex markets

By Vadim Pokhlebkin
Thu, 28 Jul 2011 14:15:00 ET
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 "Gold, currencies like the Swiss franc...are some Treasury alternatives investors are looking to while they ride out uncertainty over the debt-ceiling negotiations in Washington." -- The New York Times, July 27. 

Now that the U.S. dollar is trading at an all-time low against the Swiss franc, discussions of the Swiss franc's "safe haven" appeal are commonplace. But could you have seen the USD/CHF trading as low as it is today before the news?
 
If you know Elliott wave analysis -- yes. Here's how.
 
Take a look at this chart. (Copied from EWI's forex-focused Currency Specialty Service; some chart labels have been erased.)
 
 
You see those two sets of converging trendlines? Those are Elliott wave patterns called "contracting triangles." Here's their idealized form:
 
 
 
 
You ask, how would this pattern help you to anticipate lower lows in the USD/CHF? Here's how: After a triangle ends, prices resume moving in the direction of the previous trend -- down, in this case.
 
No news, no drama, just pure Elliott.
 

Knowing the future implications of every Elliott wave move in USD/CHF can help you with your trading decisions.
 
EWI's forex-focused Currency Specialty Service delivers actionable forecasts -- 24 hours a day -- based on developing Elliott wave patterns. Get up to speed on the next forex opportunity when you subscribe to Currency Specialty Service.
 

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