Trade Idea: USD/CHF – Sell At 1.0420
By actionfx
USD/CHF – 1.0305
Most recent candlesticks pattern : N/A
Trend : Sideways
Tenkan-Sen level : 1.0312
Kijun-Sen level : 1.0332
Ichimoku cloud top : 1.0391
Ichimoku cloud bottom : 1.0362
New strategy
Sell at 1.0420, Target: 1.0220, Stop: 1.0485
Although the greenback broke below support at 1.0253 this morning, lack of follow through selling suggests further sideways consolidation would take place and the horizontal moving Tenkan-Sen and Kijun-Sen also add credence to this view, however, reckon upside would be limited to Ichimoku cloud top (now at 1.0391) and renewed selling should emerge below resistance at 1.0422, bring another retreat later. Below said support would bring stronger retracement of recent upmove to 1.0210 (approx. 50% Fibonacci retracement of 0.9910 to 1.0509), however, reckon support at 1.0176 (previous resistance turned support) would hold from here.
In view of the above analysis, we are looking to sell dollar on recovery. Only above resistance at 1.0509 would signal the upmove from 0.9910 (2009 low) has resumed for headway to 1.0550/60, then towards 1.0592 (previous support turned resistance).
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I have an imediate buy at 1.0281
3am EST January 7, 2010
I can only give immediate EURUSD signals.