22, March 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

Thursday the pair was being traded near the Ichimoku cloud. The pair could not leave the cloud area.

Tenkan-Sen is below the Kijun-Sen, both lines are horizontal. The Cloud is horizontal as well. We have a confirmed sell signal. If the price is fixed below the Ichimoku cloud, it will continue to fall to the level 0.9413, after consolidating at it the pair will go to 0.9335.

Bollinger Bands are directed aside and have a fixed price channel.

MACD is on the zero line.

Trading recommendations

The pair does not determine its direction. Traders are waiting what happens with Cyprus further, they not run the risk to open deals.

We recommend opening short positions, the first goal of the southern movement is the level 0.9413, the second target – 0.9335.

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.

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.