USD/CHF is trading sharp and bullish, ideally unfolding a five-wave rally as part of wave 1 of a bigger bullish cycle. This sharp recovery is a confirmation that wave 2) of one higher degree had ended at the 0.9716 level, and that more upside may follow. At the moment we see sub-wave iii of 1 in play, which can face resistance near the 1.0005 level(level of a former swing high), from where corrective wave iv may start to develop. That said, once wave 1 fully develops five minor waves, that is when a wave 2 correction of a higher degree may start to take place.

USD/CHF, 4h