Trade Idea Wrap-up: USD/CHF – Stand aside


USD/CHF – 0.9707

Most recent candlesticks pattern : N/A

Trend                                    : Near term down

Tenkan-Sen level                  : 0.9720

Kijun-Sen level                    : 0.9758

Ichimoku cloud top                 : 0.9880

Ichimoku cloud bottom              : 0.9855

Original strategy :

Sell at 0.9780, Target: 0.9680, Stop: 0.9815

Position : –

Target :  –

Stop : –


New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

As dollar has fallen again after yesterday’s selloff, adding credence to our view that the decline from 0.9999 top is still in progress for further weakness to 0.9680 (1.618 times projection of 0.9999-0.9858 measuring from 0.9908), however, loss of near term downward momentum should prevent sharp fall below previous support at 0.9640, bring rebound later. 

In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above the Kijun-Sen (now at 0.9749) would bring recovery to 0.9775-80 but reckon upside would be limited to 0.9800-05 and price should falter below previous support at area at 0.9843-58, bring another selloff.

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