Trade Idea Wrap-up: USD/CHF – Sell at 0.9850

USD/CHF – 0.9750

Most recent candlesticks pattern : N/A

Trend                                    : Near term down

Tenkan-Sen level                  : 0.9773

Kijun-Sen level                    : 0.9783

Ichimoku cloud top                 : 0.9843

Ichimoku cloud bottom              : 0.9799

Original strategy :

Sell at 0.9850, Target: 0.9750, Stop: 0.9885

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9850, Target: 0.9750, Stop: 0.9885

Position : –

Target :  –

Stop : –

As dollar has fallen again after brief recovery, suggesting recent selloff from 1.0344 top is still in progress and bearishness remains for this move to extend further weakness to 0.9735-40 (76.4% retracement of 0.9550-1.0344), then towards 0.9700, however, near term oversold condition should prevent sharp fall below 0.9675-80 and reckon 0.9650 would hold from here, 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 0.9850-55 should limit upside. Above 0.9870-80 would defer and risk rebound to 0.9900 but upside should be limited to 0.9940-50 and price should falter well below previous support at 0.9987, bring another decline.