Trade Idea Wrap-up: USD/CHF – Buy at 1.0050

USD/CHF - 1.0132

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level :1.0086
Kijun-Sen level :1.0085
Ichimoku cloud top :1.0045
Ichimoku cloud bottom :1.0009

Original strategy :

Buy at 1.0075, Target: 1.0200, Stop: 1.0025

New strategy :

Buy at 1.0050, Target: 1.0190, Stop: 0.9995

As dollar has retreated after intra-day rally to 1.0171, suggesting minor consolidation would be seen, however, as temporary low has been formed at 0.9933 earlier this week, downside should be limited to 1.0045-49 (previous resistance turned support and current level of the Ichimoku cloud top) and renewed buying interest should emerge there and bring another rise. Above said resistance would bring retracement of recent decline to 1.0210 minor resistance, however, near term overbought condition should limit upside to 1.0250/55 (61.8% Fibonacci retracement of 1.0451 to 0.9933) and price should falter well below resistance at 1.0278.

In view of this, we are looking to buy dollar on pullback, only below intra-day support at 0.9997 would abort and signal the correction from 0.9933 has ended, bring resumption of decline for retest of 0.9933.

No update on 17 Sept and next update on Monday 20 Sept.