USD/CHF reversed sharply lower at the end of the last week from 0.9837 to 0.9590, which can be counted as a five wave decline. However, we must keep in mind that a larger trend is up, so we need to label the wave count that fits best into the current price action. In other words, we need to stay with a trend, so we suspect that those five waves down represents wave C, final leg of a three wave flat correction in wave 4). In fact, we can see that prices reversed sharply from the latest low in impulsive fashion, so ideally wave 4) is complete, and the market is headed higher within wave 5) towards parity while the 0.9590 level holds.

Forex Analysis by Gregor Horvat at ForexPros. com