Price has dropped nicely towards our profit target. We prepare to buy above 1.1379 support (Fibonacci retracement, horizontal overlap support, Elliott wave theory) for a bounce up towards 1.1447 resistance (Fibonacci extension, horizontal swing high resistance, Elliott wave theory).
Stochastic (34,5,3) is seeing strong support above 2.7% where we expect a bounce from.
Correlation analysis: EUR/USD and USD/CHF are strongly negatively correlated. Hence it is good that we expect a drop on USD/CHF and a bounce on EUR/USD as this shows that they are moving in tandem.
Buy above 1.1379. Stop loss at 1.1355. Take profit at 1.1447.
