Trade Idea: USD/CHF — Buy At 1.0435

USD/CHF - 1.0528

Most recent candlesticks pattern : N/A

Trend : Up

Tenkan-Sen level : 1.0512
Kijun-Sen level : 1.0461
Ichimoku cloud top : 1.0387
Ichimoku cloud bottom : 1.0317

Original strategy

Buy at 1.0435, Target: 1.0590, Stop: 1.0365

New strategy

Buy at 1.0435, Target: 1.0590, Stop: 1.0365

As the greenback has maintained a firm undertone after rising to 1.0559 yesterday, suggesting recent upmove from 2009 low of 0.9910 would resume after consolidation and extend gain to 1.0592 (previous support turned resistance) . Having said that, loss of upward momentum should prevent sharp move beyond 1.0690/00 (38.2% Fibonacci retracement of 1.1967-0.9910) and risk from there has increased for a retreat next week.

In view of the above analysis, we are still looking to buy dollar on pullback as renewed buying interest should emerge around 1.0432 (38.2% Fibonacci retracement of 1.0227 to 1.0559) and bring resumption of the aforesaid upmove. Only below support at 1.0368 would signal temporary top has been formed, then correction to the Ichimoku cloud bottom (now at 1.0317) would be seen.

Based on ActionForex.com Technical Outlook