For over two weeks continues the correctional movement of the Swiss franc. Soon the length of the correctional way may equal 1000 pips.
Graphically the price went through a set of very important levels. on Friday last week the price managed to break through the level 0.7960 which is the level corresponding to 61.8 of a short-term and to 38.2 of midterm Fibo fans. Breaking through the level opens a way to the level 50.0 of a midterm correction (orange Fibo on the chart). Taking into account that the level has an incline we can say that the resistance will be the range between 0.8220 and 0.8270. Thus, we should not forget about the Fibo horizontal correction. It indicated that the resistance can be formed earlier at 0.8218.
As for the oscillators here the tendencies did not confirm. The stochastic, after giving a sell signal on August 17, retraced by 60 according to %D and is tending to the oversold now again. The sequent entrance of the stochastic oscillator into oversold zone and a possible coincidence of the sell signal from the oscillator and a strength level of Fibo fan can give us a strong sell sign. In addition to these two signals the confirmation of selling can also come from the upper Bollinger band.
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