We are now seeing price test major resistance at 1.0980 (multiple fibonacci extensions, Elliott wave theory) and we expect a drop from this level to at least 1.0880 support (Fibonacci retracement, horizontal swing low support).
Stochastic (55,5,3) is also seeing major resistance below the 95% level where we expect a drop from.
Correlation analysis: EUR/USD has a strong negative correlation with USD/CHF which means they usually move in opposite directions. We are expecting a drop on EUR/USD and similarly USD/CHF which means it is best to exercise caution on this trade.
Sell below 1.0980. Stop loss at 1.1033. Take profit at 1.0880.
