Trade Idea Wrap-up: USD/CHF – Buy at 0.7965
By admin | July 28, 2011
USD/CHF – 0.8030
Most recent candlesticks pattern : Shooting star
Trend : Down
Tenkan-Sen level :0.8014
Kijun-Sen level :0.8018
Ichimoku cloud top :0.8112
Ichimoku cloud bottom :0.8029
Original strategy :
Buy at 0.7965, Target: 0.8065, Stop: 0.7930
New strategy :
Buy at 0.7965, Target: 0.8065, Stop: 0.7930
Although dollar has recovered after intra-day marginal fall to fresh record low of 0.7996, break of indicated resistance at 0.8077 is needed to confirm a temporary low is formed and bring retracement of recent decline towards the Ichimoku cloud top (now at 0.8112) but previous support at 0.8137 should limit upside and bring another decline later.
In view of this, we are still looking to buy dollar on next decline as 0.7960/65 (50% projection of 0.8247-0.8021 measuring from 0.8077) should limit downside and bring another rebound later. Below 0.7937 (61.8% projection of 0.8247-0.8021 measuring from 0.8077) would risk further weakness towards 0.7800 before prospect of a corrective bounce later.
