EUR/CHF Outcome

A few days back, I said it here that eur/chf has a greater chance to drop to the 50% or 68.1% fib of its last major swing up.

Here's the same chart I posted last Nov. 6:



And here is the outcome of that analysis. A perfect double top formation.




The graph shows big players are cutting their risk appetite to high yielders. A steep decline with great momentum can pull the price down to 68.1%. Break of 76.4% fib will curtail the bull.

Price is now at the 50% fib, might bounce off from here for awhile before continues its bearish trend. ..... I hope not.

So, traders who are using (long) inverse hedge strategy. If you are trading more than 20% risk, cut your losses by 50% and hold the rest. If it is less than 10% risk you're trading, Take a vacation! Come back in a week.

These are normal. It is the much needed correction after a long way up.

To know more about the inverse hedge, Click here.