Trade Idea Update: USD/CHF – Buy at 0.9600

USD/CHF – 0.9693

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 : –

The greenback has traded narrowly after surging to as high as 0.9727 late last week, suggesting further consolidation below this level would be seen and initial downside risk remains for pullback to 0.9640-45, however, previous resistance at 0.9596 should turn into support and contain downside, bring another rise later, above said resistance at 0.9727 would extend recent rise 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 suggest a temporary top is formed instead, bring correction to 0.9560-70 and possibly 0.9540 but price should stay well above support at 0.9490, bring another rise later.