Trade Idea: USD/CHF — Buy At 1.0120

USD/CHF - 1.0206

Most recent candlesticks pattern : N/A

Trend : Down

Tenkan-Sen level : 1.0200
Kijun-Sen level : 1.0142
Ichimoku cloud top : 1.0194
Ichimoku cloud bottom : 1.0114

Original strategy

Buy at 1.0120, Target: 1.0250, Stop: 1.0050

New strategy

Buy at 1.0120, Target: 1.0250, Stop: 1.0050

Dollar's retreat after rising to 1.0252 yesterday suggests a temporary top has possibly been formed and consolidation would be seen and whilst fall to the Kijun-Sen (now at 1.0142) cannot be ruled out, reckon the Ichimoku cloud bottom (now at 1.0114) would attract renewed buying interest and bring further choppy trading above recent low at 1.0033. Above said resistance at 1.0252 would bring retracement of recent decline to 1.0293 (61.8% Fibonacci retracement of 1.0453 to 1.0033), however, reckon 1.0358-60 (38.2% Fibonacci retracement of 1.0885 to 1.0033 and previous resistance level) would hold from here.

In view of the above analysis, we are still looking to buy euro on further fall. Only below 1.0033 support would risk fall to daily chart support at 1.0011, then towards 0.9980 but reckon 0.9924 (61.8% projection of 1.1026 to 1.0170 measuring from 1.0453) would limit downside.

Based on ActionForex.com Technical Outlook