Trade Idea: USD/CHF - Sell at 1.0655

USD/CHF - 1.0573

Most recent candlesticks pattern : N/A
Trend : Near term down

Tenkan-Sen level : 1.0553
Kijun-Sen level : 1.0575
Ichimoku cloud top : 1.0733
Ichimoku cloud bottom : 1.0672

Original strategy :

Sell at 1.0655, Target: 1.0510, Stop: 1.0725

New strategy :

Sell at 1.0655, Target: 1.0510, Stop: 1.0725

Despite falling marginally to 1.0507 yesterday, the subsequent rebound from there suggests minor low is in place and as price just broke above the Kijun-Sen on intra-day bounce to 1.0600, suggesting correction to 1.0642 would be seen, however, renewed selling interest should emerge around 1.0656-57 (50% Fibonacci retracement of 1.0805 to 1.0507 and 38.2% Fibonacci retracement of 1.0899 to 1.0507) and bring another decline later. Break of said support would extend the decline from 1.0899 top for a stronger retracement of early upmove towards 1.0424 (61.8% Fibonacci retracement of 1.0130 to 1.0899) but loss of near term downward momentum would keep price well above 1.0405 (50% Fibonacci retracement of entire rise from 0.9910 to 1.0899).

In view of the above analysis, we are looking to sell dollar on recovery. Only above 1.0703 (50% Fibonacci retracement of 1.0899 to 1.0507) would suggest low has been formed and risk stronger rebound to 1.0770/80.