Trade Idea Wrap-up: USD/CHF – Buy at 0.9600

USD/CHF – 0.9686

Most recent candlesticks pattern : N/A

Trend                                    : Near term down

Tenkan-Sen level                  : 0.9686

Kijun-Sen level                    : 0.9663

Ichimoku cloud top                 : 0.9559

Ichimoku cloud bottom              : 0.9539

Original strategy :

Buy at 0.9600, Target: 0.9700, Stop: 0.9565

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 0.9600, Target: 0.9700, Stop: 0.9565

Position : –

Target :  –

Stop : –

Although the greenback slipped to 0.9490 yesterday, renewed buying interest emerged and dollar has rallied above indicated resistance at 0.9622-35, confirming recent decline has ended at 0.9438, hence upside bias is seen for the move from there to extend gain to 0.9730, however, break there is needed to retain bullishness and encourage for headway to 0.9750-60, then 0.9780 but reckon 0.9800 would hold from here.
 
In view of this, would not chase this rise here and would be prudent to buy dollar on pullback as previous resistance at 0.9596 should turn into support and contain dollar’s downside. Below 0.9570 would defer and risk test of the upper Kumo (now at 0.9559) but price should stay well above support at 0.9490, bring another rise later.