Trade Idea Wrap-up: USD/CHF – Sell at 0.9760

USD/CHF – 0.9727

Most recent candlesticks pattern : N/A

Trend                                    : Near term up

Tenkan-Sen level                  : 0.9741

Kijun-Sen level                    : 0.9742

Ichimoku cloud top                 : 0.9797

Ichimoku cloud bottom              : 0.9778

Original strategy :

Sell at 0.9760, Target: 0.9660, Stop: 0.9795

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9760, Target: 0.9660, Stop: 0.9795

Position : –

Target :  –

Stop : –

As the greenback has remained under pressure, adding credence to our view that top has possibly been formed at 0.9837 last week and consolidation with mild downside bias is seen for weakness to previous support at 0.9710, however, break there is needed to retain bearishness for further decline towards 0.9669-70 (61.8% Fibonacci retracement of 0.9565-0.9837 and previous support) which is likely to hold on first testing.

In view of this, would not chase this fall here and we are looking to sell dollar on recovery as previous support at 0.9771 should turn into resistance and limit upside. Only break of resistance at 0.9808 would signal an intra-day low is formed and indicate the pullback from 0.9837 has ended, bring retest of this level later.