USDCHF testing major support, remain bullish
Buy above 0.9741. Stop loss at 0.9704. Take profit at 0.9809.
Reason for the trading strategy (technically):
Price has dropped further and is in a strong descending wedge formation. The plan is to go flat now and buy on the bullish exit of this formation. We look to buy on the bullish break of 0.9741 (Horizontal overlap resistance, Fibonacci retracement, descending resistance) and we expect momentum to push price up to at least 0.9809 resistance (Fibonacci retracement, horizontal swing high resistance, Fibonacci extension).
Stochastic (34,3,1) is seeing strong support above 11% where we expect a bounce from soon.
Reason for the trading strategy (technically):
Price has dropped further and is in a strong descending wedge formation. The plan is to go flat now and buy on the bullish exit of this formation. We look to buy on the bullish break of 0.9741 (Horizontal overlap resistance, Fibonacci retracement, descending resistance) and we expect momentum to push price up to at least 0.9809 resistance (Fibonacci retracement, horizontal swing high resistance, Fibonacci extension).
Stochastic (34,3,1) is seeing strong support above 11% where we expect a bounce from soon.