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General picture:
On May 16 the USD/CHF pair continues the ascending movement and elaboration of Golden Cross; Stochastic and MACD point at further growth of the price. The current signal for Buy-deal is confirmed and strong, as Chinkou Span is fixed above the price chart and the price is located below the Ichimoku Cloud. Therefore, targets for ascending movement are seen at the third resistance level 0.9451. In case it has been passed through, new target for bullish trade – the resistance level of the bigger timeframe 0.9466 which is almost equal to the previous target – will be available. The ascending movement remains the same as long as the price is higher than the Kijun-Sen (0.9355). While bullish trade below this line it is recommended to place the Stop Loss. Also 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 bearish mood on the USD/CHF market. Bollinger Bands shows the continuation of the ascending movement, lines are expanding and directed upwards, so it is recommended to consider long positions. MACD is directed upwards indicating the current upside movement but presently the Stochastic is more important as it is located in the oversold area.
Trading recommendations:
On USD/CHF market it is recommended to consider long positions with first target seen at the 0.9451 level. When the price passes this level through, the target for Buy-deals will be seen at the 0.9451 level. When this level is passed through, the target for Buy-deals will be seen at 0.9466. Stop Loss is to be placed below 0.9355. In case this line goes higher, Stop Loss can be placed after it. It is recommended to reduce long positions manually in case the Stochastic leaves the overbought zone. With 50-60 pips of profit Stop Loss can be placed into the zero area. Take profits are to be placed a bit higher than the target levels (10 pips approximately) 0.9440 and 0.9455.
Apart from technical picture it is necessary to consider the fundamental data and the time of its release.
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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