Trade Idea Wrap-up: USD/CHF – Sell at 0.9870

USD/CHF – 0.9790

Most recent candlesticks pattern : N/A

Trend                                    : Near term down

Tenkan-Sen level                  : 0.9813

Kijun-Sen level                    : 0.9831

Ichimoku cloud top                 : 0.9980

Ichimoku cloud bottom              : 0.9922

Original strategy :

Sell at 0.9910, Target: 0.9800, Stop: 0.9945

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9870, Target: 0.9770, Stop: 0.9905

Position : –

Target :  –

Stop : –

As dollar has continued heading south and broke below indicated previous support at 0.9813, confirming our bearish view that the decline from 1.0344 top is still in progress, hence bearishness remains for this move to extend further weakness to 0.9770, then towards 0.9735-40 (76.4% retracement of 0.9550-1.0344), however, near term oversold condition should prevent sharp fall below 0.9700, risk from there is seen for a rebound to take place later. 

In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as 0.9870 should limit upside. Above 0.9900 would defer and risk rebound to the lower Kumo (now at 0.9922) but upside should be limited to 0.9950 and price should falter well below previous support at 0.9987, bring another decline.