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

USD/CHF – 0.9796

Most recent candlesticks pattern : N/A

Trend                                    : Near term down

Tenkan-Sen level                  : 0.9794

Kijun-Sen level                    : 0.9794

Ichimoku cloud top                 : 0.9903

Ichimoku cloud bottom              : 0.9848

Original strategy :

Sell at 0.9870, Target: 0.9770, Stop: 0.9905

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9870, Target: 0.9770, Stop: 0.9905

Position : –

Target :  –

Stop : –

As dollar has recovered after intra-day marginal fall to 0.9764, suggesting minor consolidation above this level would be seen and recovery to 0.9850 cannot be ruled out, however, reckon 0.9870 would limit upside and bring another decline later, below said support at 0.9774 would extend early selloff from 1.0344 top 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 0.9925-30 but upside should be limited to 0.9950 and price should falter well below previous support at 0.9987, bring another decline.