Trade Idea Update: USD/CHF – Buy at 0.9995

USD/CHF – 1.0043

Original strategy :

Buy at 0.9995, Target: 1.0100, Stop: 0.9960

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 0.9995, Target: 1.0100, Stop: 0.9960

Position : –

Target :  –

Stop : –

As the greenback dropped quite sharply after meeting renewed selling interest at 1.0090, adding credence to our view that temporary top has been formed at 1.0108 on Monday and initial downside risk remains for weakness to 1.0002 (38.2% Fibonacci retracement of 0.9831-1.0108) but reckon support at 0.9995 would limit downside and bring another rebound later, above the Kijun-Sen (now at 1.0049) would bring rebound to 1.0070-75, break there would signal an intra-day low is formed, bring test of said resistance at 1.0090 first. Having said that, only break of this week’s high at 1.0108 would confirm recent upmove from 0.9813 has resumed for headway to 1.0140-45 but price should falter well below another previous resistance at 1.0171. 

In view of this, would not chase this rise here and would be prudent to buy dollar on next decline as support at 0.9995 should limit downside. Below 0.9970 (50% Fibonacci retracement of 0.9831-1.0108) would abort and signal recent upmove has ended, bring correction to support at 0.9948.