11, February 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

February, 07 the pair dollar/franc began an upward movement and continues it now. Bollinger Bands started to extend upward, the price worked out the top boundary of the Ichimoku cloud. The current sell signal is confirmed and weak as the Chinkou Span is above the price chart and the price is in the Ichimoku cloud.

So now the goal for the upward movement is Senkou Span B which the price has already worked out, but has not overcome yet. If the price fixes above the first goal, a new target for an upward movement will be available – the first level of resistance 0,9218. The upward movement remains until the price is above Kidjun-sen (0.9126). If the price fixes below this line the sell signal becomes weak and will be put on a cancellation, and a downward movement to the first level of support – 0,9020 can begin.

The Chinkou Span is above the price chart that is a good confirmation of the current sell signal, indicating the bullish mood of traders.

Bollinger Bands shows the continuation of an upward movement, bands are extended and heading up. Now long positions are more relevant.

MACD is turned up that indicates an upward movement and the turn of this indicator down means the possible beginning of a correctional movement. The rebound from the top border of a cloud Ichimoku also can provoke the beginning of a downward correction.

Trading recommendations

We recommend considering long positions with the first goal – Senkou Span B. When the price fixes above the first target we advise to consider 0,9218 level as the next target. Stop loss we place below 0,9130 and if this line goes up, you can move the stop loss after it.

You can close manually long positions if MACD turns down or the price rebounds from the Senkou Span B.

When we get profit of 50-60 points, stop loss can be moved to a zero. We advise to place take-profit slightly below the targets, about on 5-10 points – at 0,9210 level.

Besides a technical picture it is necessary to consider also fundamental data and time of it release.