Trade Idea: USD/CHF — Sell At 1.0785

USD/CHF - 1.0718

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level : 1.0740
Kijun-Sen level : 1.0743
Ichimoku cloud top : 1.0769
Ichimoku cloud bottom : 1.0743

Original strategy

Sell at 1.0785, Target: 1.0650, Stop: 1.0850

New strategy

Sell at 1.0785, Target: 1.0650, Stop: 1.0850

Although the greenback fell to 1.0686 yesterday, as dollar has recovered after holding above previous minor support at 1.0676, suggesting further consolidation within 1.0648-1.0810 range would take place and rebound to the Ichimoku cloud top (now at 1.0769) cannot be ruled out, however, indicated upper range should continue to hold, bring another decline later. Break of strong support at 1.0647-48 would confirm top has been formed earlier at 1.0899 and bring retracement of recent upmove to 1.0605-09 (38.2% Fibonacci retracement of 1.0130-1.0899 and previous support) and later towards 1.0563 (50% Fibonacci retracement of 1.0227 to 1.0899).

In view of the above analysis, we are still looking to sell dollar on recovery. Only break of resistance at 1.0889-99 would signal recent upmove has finally resumed and extend gain to 1.0939 (50% Fibonacci retracement of 1.1967 to 0.9910) and possibly 1.0970 before retreat.

Based on ActionForex.com Technical Outlook