01, February 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General picture

The pair continues working out a sell signal. The price is still in a strong downward movement after working out the last level of support. The current sell signal is confirmed and strong as Chinkou Span entrenched below the price chart and the price is below Ichimoku cloud. So now the goal is the third level of support – 0.9081 which the price has already worked out.

If the price fixes below the first target a new target will be available for the downward movement. It is a support level – 0.9025. The downward movement will be maintained as long as the price is below Kijun-sen (0.9185). If the price fixes above this level a sell signal would weaken and may be cancelled. As a result the price might go up to the upper boundary of Ichimoku cloud. Chinkou Span is below the price chart that is a confirmation of the current sell signal and indicates a bearish mood of traders.

Bollinger Bands show a continued downward movement, the bands are widen and downwards.

MACD is turned up, signaling the corrective movement. If the price bounces from 0.9081 that can also provoke a corrective movement.

Trading recommendations

It is advised to go short with the first target – 0.9081. If the price fixes below the first target we will consider the next level 0.9025 as a target.

Stop loss we place above 0.9185 and move it after the price.

You can also open new short positions if MACD turns down or the price fixes below 0.9081.

When you have profits of 50 - 60 points stop-loss can be move to a breakeven zone.

It is advised to place take-profit slightly above the target levels.