08, March 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

Yesterday the franc was making a correction. Pair went through the level 0.9451, tested 0.9406 and fixed a bit upper.

The signal to buy is preserved. The pair is below the Tenkan-Sen and the Kijun-Sen but above the Cloud. The Cloud has an uprising formation.

Everything confirms an upward movement.

The pair will continue growing when the price returns above the Kijun-sen 0.9439. If the price continues going down then an upward movement can be canceled.

Bollinger bands are going up and broadening.
MACD is going down.

Trading recommendations

We have a strong buy signal. It is recommended to open long positions. The first target of the upward movement is 0.9451. After consolidating on it the price will go to 0.9486.

In case of further price correction the pair will fall towards the Ichimoku cloud, to the level 0.9435.

The stop-loss is better to set below the Kijun 0.9439. Take-profit should be set up by 5-10 points below the goals. After receiving a profit of 20-30 points we place stop loss to a breakeven.