Trade Idea : USD/CHF – Sell at 1.0050

USD/CHF – 0.9990

Original strategy :

Sell at 1.0050, Target: 0.9950, Stop: 1.0085

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.0050, Target: 0.9950, Stop: 1.0085

Position : –

Target :  –

Stop : –

Although the greenback dropped sharply overnight and fell to as ow as 0.9978, current recovery suggests consolidation above this level would be seen and rebound to 1.0020 is likely, however, reckon upside would be limited and price should falter below previous support at 1.0060 (now resistance) and bring another decline later. A break of said support at 0.9978 would extend recent decline from 1.0171 top towards key support at 0.9967 but break there is needed to retain bearishness and extend fall to 0.9930-40.

In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as 1.0040-50 should limit upside. Above said previous support at 1.0060 would defer and suggest low is formed instead, risk rebound to 1.0090 and then test of resistance at 1.0109.