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19.07.2017 04:31 AM
USD/CHF testing major support, remain bullish for a corrective bounce

The price has dropped strongly after making the bearish channel exit. We prepare to buy above strong support at 0.9527 (Fibonacci extension, bullish price action, channel exit potential) for a push up to at least 0.9593 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (34,5,3) is seeing strong support above 3.6% where we expect a further bounce from.

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 0.9527. Stop loss is at 0.9500. Take profit is at 0.9593.

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Dean Leo,
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