FX.co ★ USD/CHF testing major resistance, prepare to sell

USD/CHF is testing the major resistance at 1.0100 (Fibonacci extension, horizontal swing high resistance) and we expect a drop from this level to at least 1.0000 support (Fibonacci retracement, horizontal overlap support).

Stochastic (34,5,3) is seeing the major resistance below the 97% level from where we expect a drop.

Correlation analysis: EUR/USD and USD/CHF are negatively correlated which means they usually move in opposite directions. We're expecting a rise in EUR/USD which goes in line with the drop we're expecting on USD/CHF.

Sell below 1.0100. Set stoop loss at 1.0160 and take profit at 1.0000.