Trade Idea Wrap-up: USD/CHF – Buy at 1.0000

USD/CHF – 1.0052

Most recent candlesticks pattern : N/A

Trend                                    : Near term up

Tenkan-Sen level                  : 1.0061

Kijun-Sen level                    : 1.0065

Ichimoku cloud top                 : 1.0080

Ichimoku cloud bottom              : 1.0067

Original strategy :

Buy at 1.0000, Target: 1.0100, Stop: 0.9965

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.0000, Target: 1.0100, Stop: 0.9965

Position : –

Target :  –

Stop : –

Dollar has slipped again in NY morning, adding credence to our view that temporary top has been formed at 1.0108 on Monday and consolidation below this level would be seen and initial downside bias is for pullback towards support at 1.0026, however, reckon 0.9995 support would contain weakness and bring another rise later, above 1.0085-90 would bring test of indicated resistance at 1.0108-09 but break there is needed to extend recent upmove from 0.9813 towards 1.0140-45 but loss of upward momentum should prevent sharp move beyond another previous resistance at 1.0171. 

In view of this, would not chase this rise here and would be prudent to buy dollar on subsequent pullback as support at 0.9995 should limit downside. Below 0.9970 (50% Fibonacci retracement of 0.9831-1.0108) would abort and signal top is formed instead, bring correction to support at 0.9948.