Trade Idea: USD/CHF - Sell at 1.0700

USD/CHF - 1.0615

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 1.0654
Kijun-Sen level : 1.0691
Ichimoku cloud top : 1.0769
Ichimoku cloud bottom : 1.0756

Original strategy :

Sell at 1.0745, Target: 1.0600, Stop: 1.0810

New strategy :

Sell at 1.0700, Target: 1.0550, Stop: 1.0765

The greenback finally broke below indicated support at 1.0647-48, confirming our view that top has been formed at 1.0899 earlier and consolidation with downside bias is seen for correction of recent upmove towards 1.0563 (50% Fibonacci retracement of 1.0227 to 1.0899), however, near term oversold condition would limit downside and reckon support at 1.0509 (previous resistance turned support) would hold from here and bring rebound later.

In view of the above analysis, we would not chase this decline at current level and we prefer to sell dollar on recovery as renewed selling interest should emerge around the Kijun-Sen (now at 1.0691) and the Ichimoku cloud bottom (now at 1.0756) should cap upside.