I would like you to go back to my USDCHF update of 19 July 2011, where readers were urged to follow the progression of the fifth wave very carefully, because once that was completed, we will get a correction that will last all summer.
I believe that today’s low at 0.7622 marks the end of an important cycle for the USDCHF. The Swiss National Bank has made it clear that it will not tolerate any further strength in the Swiss Franc, and we got a rapid 2% recovery in USDCHF.
Be aware that the sentiment is still very bearish, and I expect some profit taking to emerge above 0.7900. But I will look to trade the USDCHF from the long side, by buying on dips for the next few weeks.
IMportant point. We just finished an extended fifth wave, So even if we get a full retest of the lows, (including a NEW lOW below 0.7622), just use that dip to go long USDCHF. We should be seeing 0.7920 in just a few days, I am hoping. But be sure to use stops, and trade affordable position sizes.