The price is in a correction and may grow.

On the daily chart, the downward third wave of the highest level (3) of 5 ended, and the correctional fourth wave (4) of 5 forms. Now, the correctional wave B of (4) has formed, and the wave C of (4) is developing. If the assumption is correct, the USD/CHF pair will grow to the area of 0.8181–0.8375. In this scenario, the critical stop loss level is 0.7845.

During the morning session, the USD/CHF pair is consolidating near 0.7970, as US investors are in no hurry to open new positions ahead of the release of labor market statistics, which are one of the main factors influencing the US Fed’s monetary policy decisions.

On the four-hour chart, the USD/CHF pair is correcting upwards from 0.7828 (0.0% retracement) and is currently close to the 0.7974 level (61.8% retracement), a breakout of which will ensure a strengthening of the upward momentum towards the target of 0.8065 (100.0% retracement), but for this, quotes will have to break through the oncoming Descending Fan. 

The USD/CHF pair is at 0.7992, poised to continue its upward trend amid a strengthening American dollar and worsening economic forecasts from the Swiss National Bank (SNB).

Last week, the USD/CHF pair renewed the July low of 0.7897 and is now rising towards 0.7958 on the back of the American dollar correction. After reaching the year’s low of 96.30, large sell positions were closed on the USDX, and the trading instrument may reach the resistance level of 0.8065 and continue its upward trend until the next US Fed monetary policy meeting on October 29.