Trade Idea Update: USD/CHF – Sell at 0.9520

USD/CHF – 0.9457

Original strategy :

Sell at 0.9520, Target: 0.9420, Stop: 0.9555

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 0.9520, Target: 0.9420, Stop: 0.9555

Position : –

Target :  –

Stop : –

As the greenback has dropped again after brief recovery, adding credence to our view that top has been formed at 0.9773 earlier and bearishness is seen for the erratic decline from there to extend weakness to 0.9400-10, however, near term oversold condition should prevent sharp fall below 0.9370-75 and reckon 0.9350 would hold from here, risk from there has increased for a rebound later. 

In view of this, would not chase this fall at current level and we are looking to sell dollar on recovery as previous support at 0.9537 should turn into resistance and limit dollar’s upside, bring another decline. Only above resistance at 0.9578-83 would abort and signal low is formed, bring a stronger rebound towards 0.9620.