The USDCHF has corrected rather sharp in the past week and launched a minor rally to shake off its oversold condition. After the rally it has launched another correction to retest support. This pair has formed an inverted hammer formation at its declining support line and is poised for another attempt at a rally.
MACD has broken down from bullish to bearish, but holds up at its previous correction lows while its moving average remains bullish for the time being. RSI is oversold and has just crossed from extreme oversold condition into oversold which is another bullish sign.
I recommend taking initial long positions around the 0.9550 level and look for potential additions 50 pips below that level. Place your take profit level above the 0.9580 or ride it to 0.9625.
