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Elliott Wave Financial Price Forecasting

EUR vs CHF | Time to let go!

by WaveTrack International| January 15, 2015 | No Comments

The Swiss National Bank (SNB) has just announced it is abandoning the Swiss Franc’s peg to the Euro. This was originally planned over 3-years ago in order to shield the Swiss economy from the Sovereign Debt Crisis in Europe.

In early morning trading, the Euro has plunged lower from levels beforehand at 1.2000 to a low at 0.9608 – see chart. The SNB concluded that “enforcing and maintaining the minimum exchange rate for the Swiss franc against the euro is no longer justified”.

EUR vs CHF Currency

EUR vs CHF

The Elliott Wave count describes a long-term triple zig zag decline in downside progress from the October year-1939 highs of 3.499. What you see in this chart is the third and final zig zag sequence beginning from the Oct.’07 high of 1.6828. Cycle wave A ended a five wave impulse decline into the August ’11 low at 1.0068 just prior to the SNB stepping in to begin the weakening of the Swiss Franc. Note the double ‘golden-section’ levels marked with the red phi symbols at the high of intermediate wave (4) and the low of wave (5) – these are standard fib-price-ratio measurements that define the ultimate downside target levels that ended primary wave 5 at 1.0068.

Later, wave B ended counter-trend rallies into the May ’13 high at 1.2650. The gradual decline since has been the precursor to today’s collapse as part of cycle wave C. As we project out for the next few years, ultimate downside targets measure towards 0.7411-0.7329 but this is not expected to be tested until late year-2019.

Category: Currencies, Elliott Wave, Elliott Wave Charts, Elliott Wave Patterns, Elliott Wave Principle, EUR vs CHF, Financial Forecasting, FX, WaveTrack International

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WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

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