20, March 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

Yesterday the pair stopped at the Ichimoku cloud. That is a change course signal.

Tenkan-Sen is below the Kijun-Sen, the red line is going up, while the blue one is horizontal. The cloud has a horizontal formation.

The pair could not break down the cloud and returned to its upper boundary. The support and resistance levels are respectively the line Tenkan-Sen (0.9451) and Kijun-Sen (0.9485).
The pair is being traded in the cloud that confirms the uncertain mood of the market. Tenkan-Sen, Kijun-Sen and the cloud formation just support that idea.

Bollinger Bands are directed downwards and started narrowing. The indicator points to the downward movement.

MACD is in the negative area and is directed to a positive area.

Trading recommendations

Price is being traded in the cloud, we do not recommend opening any order to any direction. At the moment you can see that the northern movement is slowing down, however, the daily chart confirms the continuation of the trend and we can open new buy orders.

Should the pair return to the upward direction, the price will move up to the cloud, to the level 0.9486. After consolidation at it the price will continue moving to the level 0.9525.

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

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.