30, January 2013

USD/CHF (4 hour chart)

USD/CHF (4 hour chart)

January 30 CHF/USD continues working out a sell signal, as the price is fixed below Ichimoku cloud and worked out the first support level – 0.9208. The current sell signal is confirmed and strong as Chinkou Span entrenched below the price chart and the price is below Ichimoku cloud. So now the goal for the downward movement is the first support level 0.9208 which the price has worked out but has not overcome yet

If the price fixes below 0.9208 it is likely to go to a new target (the second support level 0.9152) and will continue the downward movement. The downward movement is maintained as long as the price is below Kijun-sen (0.9260). If the price fixes above this line that fact shall weaken a sell signal and put it on the brink of cancellation, thus make possible an upward movement to the upper boundary of Ichimoku cloud. Chinkou Span is below the price chart that is a confirmation of the current sell signal indicating a bearish mood for the currency.

Bollinger Bands show continued downward movement, the bands are widen and downwards. It is recommended opening short positions.

MACD currently falls, signaling the downstream movement, its spread upward may become a beginning of a correction. A corrective movement can be also provoked if the price bounces from 0.9208 level.

Trading recommendations

We advise you should consider shorts with the first target – 0.9208. If the price fixes below the first target we recommend considering the level 0.9152 as the second goal.  

You can manually close orders if MACD turns up or the price bounces from the level 0.9208. Reaching profits of 50 - 60 points stop-loss can be moved to a zero level.

Take-profit can be set slightly above the target levels by about 5 - 10 points - at the levels of 0.9215 and 0.9160.