FX.co ★ The technical analysis of the USD/CHF for 13.07 – 17.07

Day timeframe

Ishimoku:

Proceeding from the technical image, we can see a clear downside trend, however, there are some reversal signs. The price stood above Tenkan-sen and Kidjun-sen. Tenkan-sen turned out and now is up-directed, although, the fact that the price is higher the Tenkan-sen rate puts into question the further prospects of the down-going motion. Presently, is seen a reversal, for its approval is reqiured the price fixing above Kidjun-sen, thereafter, further affirmation by the other Ishimoku bounds and reversal indicators, meanwhile, the lateral movement goes on, bounded by the Bollinger bands. Kidjun-sen turned out and is up-directed approving that the descending motion is over. The purchase signal has formed and was approved by Chinkou Span, that is why the most indicators point at a possible begin of the upturn direction. At the present time, it is recommended to increase the long positions at least to the upper Bollinger band, after that in case of its break through is seen the rising trend continuation. Tenkan-sen and Kidjun-sen lines are the support levels for the current movement. In case of a price fix-up below Kidjun-sen, the ascending trend is put into question and there will be a high probability of the current signal cancellation. Now, the resistance is the Ishimoku cloud bounds. The Ishimoku cloud continues its decreasing motion. Chinkou Span is above the price graph, that also confirms the upward tendency. At this moment, the price\'s target is at the bottom Ishimoku bound, after fixing above it — furhter to the upper bound.

Bollinger Bands:

This indicator demonstrates the lateral motion. The lines narrowed and directed sidewards. As we can see, the price broke through the middle Bollinger band, approving a possible ascending trend start-up and fixed above the middle bound signaling a probable price move backwards to the upper one. The descending tendency can be considered if the Bollinger bands are down-directed. In a short term the sideward tune within the Bollinger bands, amid this range break through may begin the trend motion. Consiquently, it is better to wait for such outbreak to determine the tendency direction.

MACD:

This indicator shows a possible rising trend onset. For more confidence in the upside trend it is reqiured to wait for this signal approvement. For now, the most probable events scenario — is a lataral movement.

Trading recommendations:

The sidewards move continuation is possible with the USD/CHF currency pair. So, it is recommended to start trading in case of a break through of the upper and bottom Bollinger band and Ishimoku movement approval. In case of remove from the upper or bottom Bollinger band you can trade amid the jump off with the first target — the middle Bollinger band and further to the opposite bound. Currently, the most probable variant — is a break through of the upper Bollinger band, verification in a form of the purchase signal has been already set up.

The picture clarification

Ishimoku indicator:

Tenkan-sen — red line
Kidjun-sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line

Bollinger Bands indicator:

3 yellow lines

MACD indicator:

The red line and the histogram with the white bars in the indicators window

Have a good trading

July 13, 2009
Stanislav Polianskiy