Trade Idea Wrap-up: USD/CHF – Sell at 0.9530

USD/CHF – 0.9475

Most recent candlesticks pattern : N/A

Trend                                    : Down

Tenkan-Sen level                  : 0.9466

Kijun-Sen level                    : 0.9499

Ichimoku cloud top                 : 0.9595

Ichimoku cloud bottom              : 0.9570

Original strategy :

Sell at 0.9520, Target: 0.9420, Stop: 0.9555

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9530, Target: 0.9430, Stop: 0.9565

Position : –

Target :  –

Stop : –

As the greenback has recovered after falling to 0.9428, suggesting minor consolidation above this level would be seen and test of the Kijun-Sen (now at 0.9499) and then 0.9515-20 (38.2% Fibonacci retracement of 0.9663-0.9428), however, previous support at 0.9537 should limit upside and bring another decline later, below said support at 0.9428 would extend recent decline to 0.9400, however, loss of momentum should prevent sharp fall below 0.9370-75 and reckon 0.9350 would hold. 

In view of this, would not chase this fall at current level and we are looking to sell dollar on recovery as previous support at 0.9537 should turn into resistance and limit dollar’s upside, bring another decline. Only above resistance at 0.9578-83 would abort and signal low is formed, bring a stronger rebound towards 0.9620.