Trade Idea Wrap-up: USD/CHF – Hold long entered at 0.9450

USD/CHF – 0.9472

Most recent candlesticks pattern : N/A

Trend                                    : Down

Tenkan-Sen level                  : 0.9466

Kijun-Sen level                    : 0.9479

Ichimoku cloud top                 : 0.9558

Ichimoku cloud bottom              : 0.9546

Original strategy :

Bought at 0.9450, Target: 0.9550, Stop: 0.9415

Position : – Long at 0.9450

Target :  – 0.9550

Stop : – 0.9415

New strategy  :

Hold long entered at 0.9450, Target: 0.9550, Stop: 0.9420

Position : – Long at 0.9450

Target :  – 0.9550

Stop : – 0.9420

As the greenback has dropped again and has remained under pressure, marginal weakness from here cannot be ruled out, however, loss of near term downward momentum should prevent sharp fall below 0.9415-20 and prospect of a rebound remains, ab one the Kijun-Sen (now at 0.9496) would bring subsequent gain to 0.9550 but dollar needs to penetrate resistance at 0.9595 to signal low is formed.

In view of this, we are holding on to our long position entered at 0.9450. Below 0.9415-20 would risk weakness to 0.9390-00, having said that, further sharp fall below 0.9370-75 should not be repeated and reckon 0.9350 would hold from here, bring rebound later.