After the SNB shocked global markets by abandoning its long-standing cap against the euro EUR/CHF dropped to 9651. Then the pair rallied and reached nearly 1.12 in February 2016. The subsequent move down from 1.12 seems to be unfolding as a WXY combination and I believe we're at the early stages of wave Y.
The decline from 1.10 unfolded in 5 waves which suggests minor wave 1 is complete. Minor wave 2 is complete or we will see 3 waves up and in that case wave 2 will unfold as a smaller WXY pattern (see ALT in red). This ALT scenario is not unlikely because the move down from 1.0984 unfolded in 3 waves so this wave could be an X wave.
Long story short: I'm bearish as long as 1.10 holds.
