Trade Idea : USD/CHF – Sell at 0.9740 or buy at 0.9610

USD/CHF – 0.9630

Most recent candlesticks pattern : N/A

Trend                                    : Near term up

Tenkan-Sen level                  : 0.9616

Kijun-Sen level                    : 0.9637

Ichimoku cloud top                 : 0.9693

Ichimoku cloud bottom              : 0.9650

Original strategy :

Sell at 0.9710, Target: 0.9610, Stop: 0.9745

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9740, Target: 0.9620, Stop: 0.9775

O.C.O.

Buy at 0.9610, Target: 0.9710, Stop: 0.9575

Position : –

Target :  –

Stop : –

Although the greenback fell briefly to 0.9599, lack of follow through selling on break of previous support at 0.9612 and current rebound suggest consolidation with mild upside bias would be seen and test of resistance at 0.9675 cannot be ruled out, however, break there is needed to signal an intra-day low is formed, bring test of the upper Kumo (now at 0.9693) but previous support at 0.9710 should limit upside and renewed selling interest should emerge around 0.9740-50, bring another decline later.

In view of this, whilst we are still looking to sell dollar on subsequent rebound, we would turn long on dips. Below said support at 0.9599 would extend the corrective decline from 0.9773 top for retracement of early upmove to 0.9565-70 (61.8% Fibonacci retracement of 0.9438-0.9773).