FX.co ★ EUR/USD testing resistance, remain bearish

The price has risen a lot since yesterday and is now testing strong resistance at 1.1583 (Fibonacci extension, swing high resistance, bearish price action, bearish divergence) and we expect to see a reaction off this level for a drop to at least 1.1491 support (Fibonacci retracement, horizontal pullback support).

Stochastic (34,5,3) is seeing strong resistance below 97% and also sees bearish divergence vs price signalling that a drop is impending.

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.

Sell below 1.1583. Stop loss is at 1.1617. Take profit is at 1.1491.