USDCHF now testing major resistance, prepare to sell

The price shot up yesterday and is now testing major resistance. We prepare to sell below major resistance at 0.9687 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) for a push down to at least 0.9602 support (Fibonacci extension, horizontal swing low support).

Stochastic (34,5,3) is seeing major resistance below 94% where we expect a further drop from.

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

Sell below 0.9687. Stop loss at 0.9741. Take profit at 0.9602.

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

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