26, February 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

Yesterday, as we expected, the pair was in the correction. Frank tested the Kijun-sen level and bounced from it up back to its upward movement.

The Chinkou Span is above the price chart and the price is above the Ichimoku cloud that's a very bearish pattern.

The first goal is 0.9406. Still the price will move to this level after working out the level 0.9335.

After overcoming this resistance level the price should go to 0.9451. The upward movement will continue as long as the price is above the Kijun-Sen 0.9259. If the price is fixed below this level the signal to buy will be canceled. The price can move in the direction of the Ichimoku cloud in this case.

The Chinkou Span is above the price chart, which confirms a buy signal.

Bollinger indicator and MACD show the continuation of the northern movement.

Trading recommendations

We have a strong buy signal. It is advised to go long. The first target of the upward movement is 0.9406 level, the second is 0.9451.

Stop-loss is better to place below the Kijun (0.9259). Take-profit is set by 5-10 points below the target levels.