04, June 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

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. Our main goal now is the level of support – 0.9410 which the price has already tested.

If the price consolidates below the first target a new target will be available for the downward movement. It is a support level – 0.9344. The downward movement will be as long as the price is below Kijun-sen. If the price fixes above this level the sell signal would weaken and may be cancelled.

Bollinger Bands show a continued downward movement, the bands are broadening.
MACD is in a negative area and keeps going down.

Trading recommendations

It is advised to go short with the first target – 0.9410. If the price fixes below the first target we will consider the next level 0.9344 as a target.

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.