**USD/CHF: Wave Analysis and Forecast**
*Based on the article by Fyodor Sazonov at FxPro News (https://fxpro.news/tech-analysis/usdchf-wave-analysis-24-december-2025-20251224/amp/), expanded with additional insights into broader Forex technical analysis.*
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### Overview of USD/CHF Wave Structure
The USD/CHF currency pair has been exhibiting clear impulses and corrections as part of its long-term wave structure. Recent trading activity confirms the formation and progression of distinct Elliott Wave patterns, a method traders use to forecast market movements based on crowd psychology and price cycles.
#### Key Observations:
– Price movements since the start of 2025 have respected both classical support and resistance levels.
– The pair recently completed a corrective phase before initiating a new bullish impulse wave.
#### Current Wave Count & Analysis
According to the Elliott Wave Principle, markets move in predictable five-wave (impulse) and three-wave (corrective) patterns. In the current context, the USD/CHF appears to be forming:
– A large upward impulse (Wave (C)), following the completion of a corrective Wave (B).
– Inside the motive wave, there is a visible five-wave structure (labeled 1-2-3-4-5) on the four-hour and daily charts.
**Details on Wave Development:**
1. **Wave A:** The initial rise from support, marking renewed bullish sentiment.
2. **Wave B:** A shallow retracement, possibly driven by macroeconomic data or short-term risk sentiment.
3. **Wave C:** A robust upward move, with price action pushing toward new short-term highs.
**Intraday and Medium-Term Technical Factors:**
– *Momentum indicators* such as RSI and MACD presently confirm bullish momentum but show mild overbought signals.
– Volatility indicators suggest expanding price ranges, which often accompany the beginning stages of a significant wave.
– Fib retracement analysis shows the recent upward impulse encountering resistance around the 61.8% level of the most recent correction.
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### Implications for Forex Traders
Based on the wave count, USD/CHF remains in a bullish phase, with potential for further gains as the impulse wave (C) unfolds. However, traders should be aware of possible corrective pullbacks or consolidations, which are natural within any trending move.
#### Trading Considerations
– **Entry Opportunities:** Pullbacks to previous resistance levels, now acting as support, may offer favorable buying setups.
– **Risk Management:** Protective stop-loss orders are recommended below the base of Wave B or near significant moving averages on the four-hour chart.
– **Profit Targets:** Initial targets can be set at recent swing highs, with possible extensions if bullish momentum persists.
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### Fundamental Drivers Behind USD/CHF
While wave analysis outlines technical potential, it is crucial to consider the impact of macroeconomic factors on the USD/CHF pair.
#### Major Forces Affecting the Pair
– **Federal
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