USDCHF right on selling area, remain bearish
Sell below 0.9762. Stop loss at 0.9811. Take profit at 0.9641.
Reason for the trading strategy (technically):
Price is once again right on our selling area. We remain bearish below major resistance at 0.9762 (Fibonacci retracement, Fibonacci extension, bearish divergence) for a drop from this level to at least 0.9641 support (Fibonacci extension, horizontal swing low support).
Stochastic (55,5,3) is seeing strong resistance below our 98% level where multiple reactions had occurred in the past. We also see bearish divergence vs price signalling that a drop is impending.
Correlation analysis: We’re seeing a drop on USDCHF and similarly a bounce on EURUSD which goes in line with its negative correlation with each other.
Reason for the trading strategy (technically):
Price is once again right on our selling area. We remain bearish below major resistance at 0.9762 (Fibonacci retracement, Fibonacci extension, bearish divergence) for a drop from this level to at least 0.9641 support (Fibonacci extension, horizontal swing low support).
Stochastic (55,5,3) is seeing strong resistance below our 98% level where multiple reactions had occurred in the past. We also see bearish divergence vs price signalling that a drop is impending.
Correlation analysis: We’re seeing a drop on USDCHF and similarly a bounce on EURUSD which goes in line with its negative correlation with each other.