USDCHF approaching major support, prepare to buy for a bounce
Buy above 0.9493. Stop loss at 0.9451. Take profit at 0.9566.
Reason for the trading strategy (technically):
Price is now testing major support at 0.9493 (Fibonacci retracement, horizontal overlap support) and we expect to see a bounce above this level to at least 0.9566 resistance (Fibonacci retracement.
Stochastic (34,5,3) is fast approaching 6.4% where we expect a bounce from that corresponds to price too.
Correlation analysis: USDCHF and EURUSD are negatively correlated. So it is nice to see a bounce on USDCHF and a correlated drop on EURUSD.
Reason for the trading strategy (technically):
Price is now testing major support at 0.9493 (Fibonacci retracement, horizontal overlap support) and we expect to see a bounce above this level to at least 0.9566 resistance (Fibonacci retracement.
Stochastic (34,5,3) is fast approaching 6.4% where we expect a bounce from that corresponds to price too.
Correlation analysis: USDCHF and EURUSD are negatively correlated. So it is nice to see a bounce on USDCHF and a correlated drop on EURUSD.