18, March 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

At the end of the week the pair reached 2012 maximums. So the correction movement started from this point. The pair has fallen for more than 200 points for two days and stopped at the bottom line of Bollinger Bands. The cause of fall was the eurozone summit that was last week. If the summit does not show good news we expect a return to the upward direction soon.

Tenkan-Sen (0.9426) is above the Kijun-Sen (09473). Ichimoku Cloud is horizontal.

The growing will be relevant when the price will return above the Kijun-sen.

Bollinger Bands are directed sideways and going apart, its middle line is directed down. The indicator points to the downward movement.

MACD is in the negative area and falling.

Trading recommendations

The pair is expected to return to the uptrend. After a sharp Friday fall a flat is possible.

In case of the correction our target is the level 0.9335.

Should the pair return to the upward direction, the price will move up to the cloud, to the level 0.9451. After consolidation at it the price will continue moving to the level 0.9486.

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.