USDCHF now testing major resistance, prepare to sell
Sell below 0.9687. Stop loss at 0.9741. Take profit at 0.9602.
Reason for the trading strategy (technically):
Price shot up yesterday and is now testing major resistance. We prepare to sell below major resistance at 0.9687 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) for a push down to at least 0.9602 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance below 94% where we expect a further drop from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they move in opposite directions. It’s good to see a bounce on EURUSD and a corresponding drop in USDCHF.
Reason for the trading strategy (technically):
Price shot up yesterday and is now testing major resistance. We prepare to sell below major resistance at 0.9687 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) for a push down to at least 0.9602 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance below 94% where we expect a further drop from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they move in opposite directions. It’s good to see a bounce on EURUSD and a corresponding drop in USDCHF.