Buy above 1.1120. Stop loss at 1.1106. Take profit at 1.1183.
Reason for the trading strategy (technically):
Price has dropped strongly since yesterday. We remain bullish above 1.1120 support (Fibonacci extension, Elliott wave theory) for a push up to at least 1.1183 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (34,5,3) is seeing major support above 3% and we expect to see a corresponding bounce above this level that coincides with the bounce we’ll be seeing in price above 1.1120.
Correlation analysis: We’re seeing a drop on USDCHF and similarly a bounce on EURUSD which goes in line with its negative correlation with each other.
Reason for the trading strategy (technically):
Price has dropped strongly since yesterday. We remain bullish above 1.1120 support (Fibonacci extension, Elliott wave theory) for a push up to at least 1.1183 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (34,5,3) is seeing major support above 3% and we expect to see a corresponding bounce above this level that coincides with the bounce we’ll be seeing in price above 1.1120.
Correlation analysis: We’re seeing a drop on USDCHF and similarly a bounce on EURUSD which goes in line with its negative correlation with each other.