Trade Idea : USD/CHF - Sell at 0.9800

USD/CHF – 0.9730

Most recent candlesticks pattern : N/A

Trend                                    : Near term down

Tenkan-Sen level                  : 0.9715

Kijun-Sen level                    : 0.9720

Ichimoku cloud top                 : 0.9818

Ichimoku cloud bottom              : 0.9777

New strategy  :

Sell at 0.9800, Target: 0.9700, Stop: 0.9835

Position : –

Target :  –

Stop : –

As dollar has recovered after holding above this week’s low at 0.9695, suggesting minor consolidation above this level would be seen and corrective bounce to 0.9750, then 0.9775-80 (38.2% Fibonacci retracement of 0.9908-0.9695), however, reckon upside would be limited to 0.9800-05 (50% Fibonacci retracement) and bring another decline. A break of said support at 0.9695 would extend the decline from 0.9999 top to 0.9680 (1.618 times projection of 0.9999-0.9858 measuring from 0.9908) but 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 sell dollar on recovery as 0.9800 should limit upside. Above 0.9825-30 (61.8% Fibonacci retracement of 0.9908-0.9695) would defer and suggest a temporary low is formed, bring retracement of recent selloff to previous support at area at 0.9843-58.

Trade Idea : USD/CHF - Sell at 0.9800