Trade Idea Update: USD/CHF – Stand aside

USD/CHF – 0.9585

Original strategy :

Buy at 0.9520, Target: 0.9620, Stop: 0.9485

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 0.9520, Target: 0.9620, Stop: 0.9485

Position : –

Target :  –

Stop : –

Although the greenback has rebounded after holding above previous support at 0.9539, reckon upside would be limited to 0.9615-20 and near term downside risk remains for another test of said support, however, if our view that low has been formed at 0.9428 last week is correct, downside would be limited to 0.9520 and bring another rebound later. Above 0.9615-20 would bring test of 0.9653-55 resistance, break there would bring another rise to 0.9680 but break there is needed to add credence to this view and extend gain to resistance at 0.9698-99. 

In view of this, would not chase this rise here and would be prudent to buy dollar on further subsequent retreat. Below 0.9515-20 would risk weakness to 0.9490-00 but still reckon downside would be limited to 0.9450-60 and said support at 0.9428 should remain intact, bring another rebound later.