Trade Idea: USD/CHF - Stand aside
USD/CHF - 1.0670
Most recent candlesticks pattern : N/A
Trend : Up
Tenkan-Sen level : 1.0714
Kijun-Sen level : 1.0658
Ichimoku cloud top : 1.0556
Ichimoku cloud bottom : 1.0505
Original strategy :
Buy at 1.0585, Target: 1.0780, Stop: 1.0520
New strategy :
Stand aside
As the greenback has moved lower again and just tested the Kijun-Sen, suggesting a temporary top has possibly been formed at 1.0800 last Friday and consolidation with mild downside bias is seen for further fall to 1.0644 (previous resistance turned support), however, break there is needed to confirm and bring correction of recent upmove towards 1.0580/85 (approx. 38.2% Fibonacci retracement of 1.0227 to 1.0800), however, reckon 1.0497-1.0505 (previous support and current level of the flat ground Ichimoku cloud bottom) would hold
On the upside, a firm breach above intra-day resistance at 1.0747/50 would signal recent upmove from 2009 low of 0.9910 has resumed for headway to 1.0822-26 (38.2% Fibonacci retracement of 1.2298 to 0.9910 and 50% Fibonacci retracement of 1.1742 to 0.9910). Having said that, loss of near term upward momentum should limit upside to 1.0870 (1.236 times projection of 0.9910 to 1.0509 measuring from 1.0130) and reckon 1.0939 (50% Fibonacci retracement of 1.1967 to 0.9910) would remain intact, yield retreat later.
As near term outlook has turned mixed, stand aside in the meantime.
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