Retracement After Price Formed A New Higher High

11 feb 2020

On USD/CHF, price broke the previous high of 0.97623, to a higher high at 0.97890 before meeting some selling pressure. During this selling pressure, price was over extended on the stochastic indicator, and after a 2 candle pull back, I brought out the Fibonacci retracement tool to confirm that a retracement is occurring. So, I am currently looking for buying opportunities. Not only did a new trend form, based on my set of rules, we are above the 50 moving average line shown in red which indicates a strong bullish market. with this in mind, there is strong levels of support structure at the 23.6 Fibonacci retracement level at the price of 0.97436. I am currently looking for price to reach this level of structure for buying opportunities, while taking into consideration that the 50 moving average is close to the 23.6 Fibonacci retracement line. This means, price could potentially reach the 50 moving average and use it as a level support, and run between the 23.6 Fibonacci level and the 38.2 Fibonacci level.