Trade Idea Update: USD/CHF – Hold short entered at 0.9755

USD/CHF – 0.9725

Original strategy :

Sold at 0.9755, Target: 0.9655, Stop: 0.9790

Position : – Short at 0.9755

Target :  – 0.9655

Stop : – 0.9790

New strategy  :

Hold short entered at 0.9755, Target: 0.9655, Stop: 0.9775

Position : – Short at 0.9755

Target :  – 0.9655

Stop : – 0.9775

Although the greenback rebounded after holding above previous support at 0.9710 and consolidation with initial upside bias is seen, reckon resistance at 0.9767-71 would limit upside and bearishness remains for the decline from 0.9837 top to resume after consolidation, below said support at 0.9710-12 would confirm and extend weakness to 0.9669-70 (61.8% Fibonacci retracement of 0.9565-0.9837 and previous support) but previous support at 0.9642 should remain intact due to oversold condition.

In view of this, we are holding on to our short position entered at 0.9755. 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.