USD/CHF dropped perfectly towards profit target, prepare to buy for a bounce

The price dropped absolutely perfectly from our selling area last week and is fast approaching our profit target. We prepare to buy above major support at 0.9606 (Multiple Fibonacci extensions, horizontal swing low support) for a push up to at least 0.9659 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (34,5,3) is seeing major support above 6% where we expect a bounce soon to happen.

Correlation analysis: EUR/USD and USD/CHF are negatively correlated, meaning they move in opposite directions. It's good to see a drop on EUR/USD and a corresponding bounce in USD/CHF.

Buy above 0.9606. Stop loss is at 0.9591. Take profit is at 0.9569.

analytics596c21ff5e23d.png

The material has been provided by InstaForex Company - www.instaforex.com