Trade Idea: USD/CHF – Buy at 0.8710

USD/CHF – 0.8828

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

Tenkan-Sen level                       :0.8821
Kijun-Sen level                         :0.8819
Ichimoku cloud top                     :0.8839
Ichimoku cloud bottom                 :0.8817

Original strategy : 

Buy at 0.8710, Target: 0.8850, Stop: 0.8675

Position: –
Target:  –
Stop:-

New strategy  :  

Buy at 0.8710, Target: 0.8850, Stop: 0.8675

Position: –
Target:  –
Stop:-

Although the greenback has rebounded after yesterday’s fall to 0.8758, a sustained break of indicated resistance at 0.8880/85 is needed to signal the pullback from 0.8927 has ended there and bring retest of this level, above there would extend upmove from record low of 0.7068 to 0.8950 and possibly 0.8970, however, reckon upside would be limited to psychological resistance at 0.9000, bring correction.

If said resistance continues to hold, then further consolidation would be seen and another corrective fall cannot be ruled out. A break of 0.8758 would bring retracement to 0.8730 but reckon 0.8706 (previous support) would attract renewed buying interest and bring another rise later.

In view of this, we would look to buy dollar on next corrective fall. Only below 0.8688 (61.8% Fibonacci retracement of 0.8540-0.8927) would abort and signal a temporary top is formed, then stronger correction to 0.8630 (previous resistance) would follow.

Forex Signals.com | Full Text RSS Feed | Amazon Plugin | Settlement Statement | WordPress Tutorials