EURCHF is bouncing back from the bottom of its channel

Well as you can see in the picture there are couple of signals to go long on EURCHF, the first one is price is reached to the bottom of its channel. Secondly there is a candle with long lower shadow which is indicating buyers are strong on that level. 3rd signal is a green candle is under development today following that long leg red candle yesterday. The 4th signal came from MACD which is showing market is losing its momentum. The 5th signal is coming from RSI which is showing a divergence between this bottom and the previous one. Finally Stochastic is overbought and all of these signals lead to a long position. Risk to reward ratio is amazing, we can leave a small stop loss just below the channel (yellow line) and go for a profit couple of times bigger than our risk.
The other scenario which might be happen is market breaking down the Yellow line. On that case, we will go our of long position with a small loss and then take a short position to ride the downward trend.

Trade closed: target reached:

Nearly 100 pips profit from this movement, stop loss was 50 pips. Market reached to a resistance zone including Monthly pivot, Weekly R2 pivot and close to EMA 50dyas. Good place to cash out for now.