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4H
General situation:
On April 23 the USD/CHF pair has successfully left the sideways movement. The rate has fixed below the Ichimoku Cloud and Bollinger Bands are expanding downwards. The current signal for Sell-deals is confirmed and strong, as the Chinkou Span is located below the price chart and the price is below the Ichimoku Cloud. That is the reason why targets for descending movement are seen at the first support level 0.9031. In case this level has been overcome, the new target for bearish trade – the second support level 0.8973 – will be available. The descending movement remains the same as long as the price is below the Kijun-Sen (0.9145). While bullish trading below this line it is recommended to place the Stop Loss. In case the price passes this line through, the signal for Sell-deals will weaken and the further elaboration of the descending movement will be questioned. Chinkou Span is located below the price chart confirming the current signal for bearish mood on the USD/CHF market. Bollinger Bands indicates the beginning of the descending movement; lines are expanded and directed downwards, so options with short positions are recommended. MACD has reversed to downwards, pointing at current downside movement of the price. Therefore, presently it is possible to remain short. If the indicator reverses to upwards, this will indicate the possible beginning of the correction.
Trading recommendations:
On the USD/CHF market it is recommended to consider short positions with first targets seen at the 0.9031 level. If the price passes this level through, the point 0. 8973 is to be considered as the next target. Stop Loss is to be placed above the point 0.9145 and, in case this line goes higher, it will be possible to place the Stop Loss after it. When the MACD reverses to upwards, it will be possible to reduce short positions manually. With 50-60 pips of profit, Stop Loss can be placed to the zero area. Take Profits are to be placed a bit higher 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.
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