The Swiss Franc is one of the most used borrowing currencies in Europe, but it has been a very expensive experience since late 2007. For quite some time the Swiss central bank tried to hold a hand under the currency pair, but it was just a question of time before they had to give up and when they did, the EUR just plunged against CHF.The chart above shows my favorite count and as can be seen I count it as a double zig-zag, where we currently is in the later part (wave v) of wave C2 down. Zooming in on wave v down the chart below shows the hourly chart.
As can be seen the rally from 130.70 was clearly in three waves up to 136.76. The decline from 136.76 does look impulsive and can be counted as a five wave decline down to 133.40 and the rally up to 136.20 is a three wave affair (see the chart below).
On the 10 minutes chart we can see, that the rally from 133.40 is a zig-zag correction, which should be over or after one more small spike higher to just above 136.20 it should be done. The next decline wave (iii) of 5 of C2 down should take us down to the 130.70 area. before some kind of flat or triangle correction sets in. I would not be surprised if we will see allot of panic for CHF-borrowers, quiting their CHF-loans very close to the final bottom.
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