07, February 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

February 7, the pair dollar/franc continued a side correction and has formed a sell signal as the bands of Bollinger testify to lateral movement.

The current sell signal is not confirmed and weak as the Chinkou is below the price chart and the price is below the Ichimoku cloud. Within the limits of a lateral motion the Ichimoku can form false signals and the current one cannot become an exception.

That’s why we shall open orders when the trend is renewed.

The Chinkou Span is below the price chart that does not confirm the current sell signal, indicating a bearish mood of traders.

Bollinger Bands shows lateral movement, the bands are narrowed (cause of prolonged correction) and heading to the sides, that’s why it’s not recommended to go on market.

MACD is turned up that indicates an upward movement. Should the indicator turn down that may become a signal for a renewal of the downward trend.

Trading recommendations

We recommend not to consider any position now. To go short we need the Bollinger turned downwards and a formation of "a dead cross». To consider long positions we should wait for expansions of the price.