13, February 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General Overview

February 13 we see that the pair dollar/franc continues an upward movement. Bollinger bands are winded and continue going upwards. The price could not leave the Ichimoku cloud trading the whole day on its upper boundary. Still it is not clear if it is going to fix itself above the cloud or to return into it.

The current sell signal is confirmed and weak as the Chinkou Span is above the price chart and the price is slightly above the Ichimoku cloud.

If the upwards movement continues the first target is 0.9218. If the price fixes above the first goal, it will continue its movement up to the next one which is 0.9270.

The upward movement remains until the price is above the Kidjun-sen (0.9137). If the price fixes below this line the sell signal will become weak and will be put on a cancellation.

The Chinkou Span is above the price chart that is a confirmation of the current buy signal and indicates the bullish mood of traders.

Bollinger Bands shows the continuation of the upward movement, bands are extended and heading up. To our opinion long positions are more relevant now.

MACD is turned upward that indicates the upward movement. The turn of this indicator down will mean a possible correctional movement. Should the price rebound from the top border of the Ichimoku that can also trigger a downward correction.

Trading recommendations

We recommend considering long positions with the first goal 0.9218. When the price fixes above the first target, we recommend going long to 0.9270.

Stop loss we place below 0.9130 and if this line goes up, you can move the stop loss after it.

You can close orders manually if MACD turns down or if the price rebounds from the Senkou Span B. When we get profit of 50-60 points, stop loss can be moved to a breakeven.

We advise to place take-profits about on 5-10 points below the target levels.