Buy above 1.0000. Stop loss at 0.9946. Take profit at 1.0100.
Reason for the trading strategy (technically):
Price has dropped perfectly and reached our profit target as expected. We prepare to buy above 1.0000 support (Fibonacci retracement, Fibonacci extension, horizontal overlap support) for a push up to 1.0100 resistance (Fibonacci extension, horizontal swing high resistance).
Stochastic (34,5,3) is fast approaching support at 4% where we expect a bounce from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they usually move in opposite directions. We’re expecting a drop in EURUSD which goes in line with the rise we’re expecting on USDCHF.
Reason for the trading strategy (technically):
Price has dropped perfectly and reached our profit target as expected. We prepare to buy above 1.0000 support (Fibonacci retracement, Fibonacci extension, horizontal overlap support) for a push up to 1.0100 resistance (Fibonacci extension, horizontal swing high resistance).
Stochastic (34,5,3) is fast approaching support at 4% where we expect a bounce from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they usually move in opposite directions. We’re expecting a drop in EURUSD which goes in line with the rise we’re expecting on USDCHF.