Trade Idea Wrap-up: USD/CHF – Buy at 0.9950

USD/CHF – 1.0006

Most recent candlesticks pattern : N/A

Trend                                    : Near term up

Tenkan-Sen level                  : 1.0010

Kijun-Sen level                    : 0.9991

Ichimoku cloud top                 : 0.9963

Ichimoku cloud bottom              : 0.9907

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 eased after rising to 1.0025 in NY morning, suggesting minor consolidation below this level would be seen and pullback to 0.9980 cannot be ruled to, however, reckon 0.9948-51 (previous support and 38.2% Fibonacci retracement of 0.9831-1.0025) would limit downside and bring another rise later, above said resistance at 1.0025 would extend the rise from 0.9813 towards previous support at 1.0060 (now resistance) but loss of upward momentum should prevent sharp move beyond resistance at 1.0109. 

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 0.9925-30 (50% Fibonacci retracement of 0.9831-1.0025) would abort and signal top is formed instead, bring correction to 0.9905 (61.8% Fibonacci retracement) but reckon previous resistance at 0.9869 would hold from here.