The strength of the Swiss Franc has taken the majority of its pairs south over the past few weeks. On this pair in particular, price is WAY oversold! In addition, if you take the love from the bottom of the wick at this pair's previous low and draw a trend line to the X point, the 0.786 retracement required for a cypher pattern fits onto the trend line almost perfectly. Large price swings come when there is an imbalance between supply and demand. If price had gradually dropped then supply and demand would be more in sync, however, due to the nature of the drop from C to D, price is still very oversold. This brings a high probability that price will correct itself before further movement is made.
I am taking this trade with 2% risk, taking profit at the 0.382 level, re-entering with half my position and my final TP level will be at the 0.618 level.
A lot of possible trades on this pair in the coming weeks