Trade Idea Wrap-up: USD/CHF – Buy at 0.9500

USD/CHF – 0.9566

Most recent candlesticks pattern : N/A

Trend                                    : Down

Tenkan-Sen level                  : 0.9582

Kijun-Sen level                    : 0.9579

Ichimoku cloud top                 : 0.9614

Ichimoku cloud bottom              : 0.9593

Original strategy :

Buy at 0.9520, Target: 0.9620, Stop: 0.9485

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 0.9500, Target: 0.9600, Stop: 0.9465

Position : –

Target :  –

Stop : –

As the greenback has retreated after meeting resistance at 0.9614, suggesting consolidation with initial downside bias would be seen and test of 0.9539-44 support is likely, however, if our view that low has been formed at 0.9428 last week is correct, downside would be limited to 0.9500 and bring another rebound later. Above 0.9615-20 would bring test of 0.9653-55 resistance, break there would bring another rise to 0.9680 but break there is needed to add credence to this view and extend gain to resistance at 0.9698-99. 

In view of this, would not chase this rise here and would be prudent to buy dollar on further subsequent retreat. Below 0.9490-00 would risk weakness to 0.9470 but still reckon downside would be limited to 0.9450 and said support at 0.9428 should remain intact, bring another rebound later.