Trade Idea: USD/CHF — Stand aside

USD/CHF - 1.0622

Most recent candlesticks pattern : N/A
Trend : Near term down

Tenkan-Sen level : 1.0589
Kijun-Sen level : 1.0577
Ichimoku cloud top : 1.0694
Ichimoku cloud bottom : 1.0664

Original strategy :

Sell at 1.0670, Target: 1.0510, Stop: 1.0735

New strategy :

Stand aside

Despite intra-day brief retreat to 1.0540, as dollar has rebounded again after finding renewed buying interest above yesterday’s low at 1.0534, suggesting further choppy consolidation above this week’s low at 1.0507 would take place and gain to the Ichimoku cloud bottom (now at 1.0664) cannot be ruled out, however, break of the upper Kumo (now at 1.0694) is needed to signal recent fall from 1.0899 has possibly ended at 1.0507 and bring stronger rebound to 1.0750/60 and later towards key resistance at 1.0805/10.

On the downside, below 1.0534/40 would revive bearishness and extend the fall from 1.0899 for retest of 1.0507, then a stronger retracement of early upmove to 1.0424 (61.8% Fibonacci retracement of 1.0130 to 1.0899).

As near term outlook has turned mixed, we are standing aside for now.

Based on ActionForex.com Technical Outlook