Trade Idea Update: USD/CHF – Sell at 0.9725

USD/CHF – 0.9645

Original strategy :

Sell at 0.9725, Target: 0.9625, Stop: 0.9760

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9725, Target: 0.9625, Stop: 0.9760

Position : –

Target :  –

Stop : –

Although the greenback extended recent rise from 0.9438 to 0.9772, lack of follow through buying on break of previous resistance at 0.9765 and the subsequent selloff below support at 0.9631 add credence to our view that top has been formed at 0.9773, hence consolidation with downside bias remains for further fall to 0.9605-10 (50% Fibonacci retracement of 0.9438-0.9773), however, near term oversold condition should limit downside to 0.9580 and reckon 0.9665 (61.8% Fibonacci retracement) would hold from here. 

In view of this, we are looking to sell dollar on recovery as 0.9725-30 should limit upside. Only break of yesterday’s high at 0.9773 would abort and revive bullishness for the rise from 0.9438 to extend gain to 0.9800-10.