Trade Idea Update: USD/CHF – Buy at 0.9950

USD/CHF – 1.0002

Original strategy :

Buy at 0.9950, Target: 1.0050, Stop: 0.9915

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 0.9950, Target: 1.0050, Stop: 0.9915

Position : –

Target :  –

Stop : –

As the greenback has surged again after finding renewed buying interest at 0.9948 yesterday, adding credence to our view that recent decline has ended at 0.9813 and bullishness remains for the rise from there to extend further gain to 1.0030, then towards previous support at 1.0060 (now resistance), however, near term overbought condition should limit upside and price should falter below resistance at 1.0109, risk from there is seen for a retreat later. 

In view of this, would not chase this rise here and would be prudent to buy dollar on pullback as said support at 0.9948 should limit downside. Below 0.9910-15 would abort and signal top is formed instead, bring correction to 0.9880 but reckon previous resistance at 0.9869 would hold from here.