USD/CHF – 1.0030
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 1.0023
Kijun-Sen level : 1.0049
Ichimoku cloud top : 1.0082
Ichimoku cloud bottom : 1.0073
Original strategy :
Buy at 1.0000, Target: 1.0100, Stop: 0.9965
Position : –
Target : –
Stop : –
New strategy :
Buy at 0.9995, Target: 1.0100, Stop: 0.9960
Position : –
Target : –
Stop : –
As the greenback dropped quite sharply after meeting renewed selling interest at 1.0090, adding credence to our view that temporary top has been formed at 1.0108 on Monday and initial downside risk remains for weakness to 1.0002 (38.2% Fibonacci retracement of 0.9831-1.0108) but reckon support at 0.9995 would limit downside and bring another rebound later, above the Kijun-Sen (now at 1.0049) would bring rebound to 1.0070-75, break there would signal an intra-day low is formed, bring test of said resistance at 1.0090 first. Having said that, only break of this week’s high at 1.0108 would confirm recent upmove from 0.9813 has resumed for headway to 1.0140-45 but price should falter well below another previous resistance at 1.0171.
In view of this, would not chase this rise here and would be prudent to buy dollar on next decline as support at 0.9995 should limit downside. Below 0.9970 (50% Fibonacci retracement of 0.9831-1.0108) would abort and signal recent upmove has ended, bring correction to support at 0.9948.
