Sell below 1.0948. Stop loss at 1.1002. Take profit at 1.0853.
Reason for the trading strategy (technically):
Price has bounced off our buying area perfectly and reached our profit target as expected. We prepare to sell below 1.0948 resistance (Fibonacci retracement, horizontal overlap resistance) for a push down towards 1.0853 support (Fibonacci retracement, Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance below the 97% level where we expect a drop from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they usually move in opposite directions. We’re expecting a rise in USDCHF which goes in line with the drop we expect on EURUSD.
Reason for the trading strategy (technically):
Price has bounced off our buying area perfectly and reached our profit target as expected. We prepare to sell below 1.0948 resistance (Fibonacci retracement, horizontal overlap resistance) for a push down towards 1.0853 support (Fibonacci retracement, Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance below the 97% level where we expect a drop from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they usually move in opposite directions. We’re expecting a rise in USDCHF which goes in line with the drop we expect on EURUSD.