06, February 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

February, 6th the pair dollar/franc continues correction against a sell signal and may work out the pivot level 0,9073 and Kidjun-sen (0.9070) today. The current sell signal is confirmed and strong as the Chinkou Span is below the price chart and the price is below the Ichimoku cloud.

So now the goal for the downward movement is the first support level which is 0.9020. If the price consolidates below the first target a new target will be available for the downward movement. The new target is the second support level – 0.8865. The downward movement will stay as long as the price is below the Kidjun-sen (0.9070), if the price consolidates above this line the sell signal will be weakened and will be put on the brink of cancellation.

Should that happen an upward movement will start growing up to the upper boundary of the Ichimoku cloud.

The Chinkou Span is below the price chart that is a confirmation of the current sell signal, indicating a bearish mood of traders.

Bollinger Bands shows a continuous downward movement, the bands are narrowing and heading downwards. We suppose that short positions are more relevant now.

MACD is going up that indicates a correctional movement. Should the indicator turn down that may become a signal for a renewal of the downward trend. The rebound from a pivot level 0,9073 also can provoke continuation of downward movement.

Trading recommendations

We advise to go short with the first target – 0.9020. When the price fixes below this level we recommend to continue with short orders to the level for sale is 0,8965.

Stop loss we place above the level 0.9125, and if this line goes down, you can move the stop loss after it. When we get profit of 50 - 60 points, stop-loss can be moved to zero. Take-profit can be set slightly above the target levels by about 5 to 10 points – at the levels of 0. 9020 and 0.8965.