Trade Idea : USD/CHF – Sell at 0.9870

USD/CHF – 0.9818

Most recent candlesticks pattern : N/A

Trend                                    : Near term down

Tenkan-Sen level                  : 0.9800

Kijun-Sen level                    : 0.9813

Ichimoku cloud top                 : 0.9921

Ichimoku cloud bottom              : 0.9867

Original strategy :

Sell at 0.9870, Target: 0.9770, Stop: 0.9905

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9870, Target: 0.9770, Stop: 0.9905

Position : –

Target :  –

Stop : –

As dollar has recovered after dropping to 0.9774 yesterday, suggesting minor consolidation above this level would be seen and recovery to 0.9850 cannot be ruled out, however, reckon 0.9870 (38.2% Fibonacci retracement of 1.0025-0.9774) would limit upside and bring another decline later, below said support at 0.9774 would extend early selloff from 1.0344 top towards 0.9735-40 (76.4% retracement of 0.9550-1.0344), however, near term oversold condition should prevent sharp fall below 0.9700, 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 0.9870 should limit upside. Above 0.9900 (50% Fibonacci retracement) would defer and risk rebound to 0.9925-30 (61.8% Fibonacci retracement) but upside should be limited to 0.9950 and price should falter well below previous support at 0.9987, bring another decline.