30, April 2013

USD/CHF (a 4 hour chart)

USD/CHF (a 4 hour chart)

General overview

The buy signal is strong and confirmed. The pair is moving in a downward correction that is approaching an important support level 0.9335. The Chinkou Span is above the price and the price is being traded above the Ichimoku cloud. The buy signal will be actual as long as the pair is being traded above the Cloud.

If the correction continues, the price may be fixed below Clouds, which will weaken the buy signal and can be the beginning of a downward movement to 0.9335.

The Tenkan-Sen is below the Kijun-Sen, the Tenkan-Sen is directed upwards, the Kijun-Sen is directed sideways. The Chinkou Span is below the price chart, the Cloud is growing.

Bollinger Bands are narrowing and turning down.
MACD is in a positive area, below the signal line, the histogram is going down. If the histogram enters the negative zone that might be a signal for a downward movement.

Trading recommendations

The pair is being corrected to the level 0.9335. If the pair bounces from this level up we can expect the continuation of the northern movement.

The correction can be dragged out and the pair can break the level 0.9335 and went under the Cloud. This will increase the pressure on the franc and may cancel the buy signal.