Trade Idea: USD/CHF — Sell At 1.0655

USD/CHF - 1.0572

Most recent candlesticks pattern : N/A

Trend : Near term down

Tenkan-Sen level : 1.0545
Kijun-Sen level : 1.0594
Ichimoku cloud top : 1.0769
Ichimoku cloud bottom : 1.0722

Original strategy

Sell at 1.0640, Target: 1.0480, Stop: 1.0705

New strategy

Sell at 1.0655, Target: 1.0510, Stop: 1.0725

Although the greenback fell marginally to 1.0507, the subsequent rebound from there suggests minor low is in place and above the Kijun-Sen (now at 1.0594) would bring correction to 1.0642, however, renewed selling interest should emerge around 1.0656-57 (50% Fibonacci retracement of 1.0805 to 1.0507 and 38.2% Fibonacci retracement of 1.0899 to 1.0507) and bring another decline later. Break of said support would extend the decline from 1.0899 top for a stronger retracement of early upmove towards 1.0424 (61.8% Fibonacci retracement of 1.0130 to 1.0899) but loss of near term downward momentum would keep price well above 1.0405 (50% Fibonacci retracement of entire rise from 0.9910 to 1.0899).

In view of the above analysis, we are looking to sell dollar on recovery. Only above 1.0703-22 (50% Fibonacci retracement of 1.0899 to 1.0507 and current level of the Ichimoku cloud bottom) would suggest low has been formed and risk stronger rebound to upper Kumo (now at 1.0769).

Based on ActionForex.com Technical Outlook