11.04.201211:18 Forex Analysis & Reviews: USD/CHF Technical Analysis and Trading Recommendations for April 11, 2012

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General situation:
On April 11 the USD/CHF pair is trying to resume the ascending movement, though Bollinger Bands indicates the sideways movement of the price. Thus, it is recommended to refrain from opening the positions before they begin expansion. The current signal for Buy-deals is confirmed and strong as Chinkou Span is fixed above the price chart and the price has reached the Ichimoku Cloud. Therefore, the target for uprising movement is seen at the first resistance level 0.9260. In case it has been overcome, the new target for bullish trading – the second resistance level 0.9352 – will be available. The upward movement remains relevant as long as the price is above the Kijun-Sen line (0.9180). While bullish trading below this line it is recommended to place Stop Loss. When the price goes lower than this line the signal for Buy-deals will weaken and the further elaboration of the ascending movement will be questioned. Chinkou Span is located above the price chart confirming the current signal for Buy-deals and indicating the bullish mood on the USD/CHF market. Bollinger Bands indicates the current sideways movement, lines are not expanding and directed sideways. Thus, it is recommended not to enter the market with any positions till Bollinger Bands expansion. MACD is directed upwards pointing at the upward movement but as Bollinger Bands is directed sideways it is better not to enter the market.

Trading recommendations:
On the USD/CHF market it is recommended to consider long positions with first targets seen at the 0.9260 level but only in case of Bollinger Bands expansion to upwards. When this level has been passed through, the next target for Buy-deals will be seen at level 0.9352. Stop Loss is to be placed below 0.9180 and if this line goes higher, Stop Loss can be replaced after it. While opening new long positions MACD should indicate the uprising movement. With 50-60 pips of profit Stop Loss can be placed a bit lower than the target levels (10-15 pips approximately).

Apart from the technical picture it is necessary to consider the fundamental data and the time of its release.

Explanations to the picture:
Ichimoku Indicator:
Tenkan-Sen – red line
Kijun-Sen – blue line
Senkou Span A – light brown dotted line
Senkou Span B – light blue dotted line
Chinkou Span – green line
Senkou Span B – violet dotted line
Bollinger Bands:
3 yellow lines
MACD Indicator:
Red line and the histogram with white bars in the indicators window.