4-hour timeframe
Overview:
It seems that franc started downside movement. New sell signal with 0.9423 target leve has been formed. The signal is strong and confirmed, as the Chinkou Span managed to fixate below the price chart and the price fixed below the Ichimoku Cloud. Therefore, now the first target of the downside movement is the second support level 0.9408. In case this level is passed the next target will be the third support level of 0.9255. The downside movement remains until the price is below the Kijun-Sen (0.9610), if the price fixates above this line it is advisable to cut short positions. The Chinkou Span is below the price curve, thus indicating the bearish sentiment and confirming the sell signal. The Bollinger Bands seem to show the beginning of downside trend, the lines are diverging and directed down. The MACD is descending indicating the downward movement.
Trading recommendations:
Currently it is recommended to trade down with the target to 0.9408, in case this level is passed the next target will be 0.9255. Stop Loss should be placed above the Kijun-Sen (0.9610). In case the MACD reverses up short positions should be cut manually.
In addition to technical image, one should take into account the fundamental data and the time of their release.
The chart annotation:
Ichimoku indicator:
Tenkan-sen — red line
Kijun-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.
