Trade Idea Update: USD/CHF – Sell at 1.1370

Original strategy :

Sell at 1.1370, Target: 1.1270, Stop: 1.1420

New strategy :

Sell at 1.1370, Target: 1.1270, Stop: 1.1420

Although dollar has recovered after holding above the Ichimoku cloud bottom (now at 1.1262), early breach of indicated support at 1.1298 (yesterday's low) signals a temporary top has possibly been formed at 1.1446 earlier and downside bias remains for correction of recent rise and break of the lower Kumo would bring test of previous resistance at 1.1245. However, break there is needed to retain bearishness and extend weakness towards 1.1195 (another previous minor resistance) later.

In view of this, we are looking to turn short on recovery. Above 1.1420 would risk retest of 1.1446 but break there is needed to confirm upmove has resumed and extend gain to 1.1490/00 but near term loss of upward momentum should limit upside to 1.1558 (1.236 times projection of 1.0732 to 1.1245 measuring from 1.0924)