Day timeframe
Ishimoku:
New sell signal with 0.9324 target level has been formed. The signal is very strong, as the price is below the Ichimoku Cloud and the Chinkou Span managed to fixate below the price chart. Therefore, downside movement is most likely to extend as there are no signs of reversal or at least correction. It is recommended to trade down with the second support level 0.9373 as the first target. If the level 0.9373 is passed, the third support level 0.9198 will be the next target. If the price manages to fixate above the Kijun-Sen (0.9775) the signal will grow weaker and short positions should be closed in this case. The price is located below the Tenkan-sen and the Kijun-Sen lines and below the Ichimoku cloud, which indicates downtrend. The Tenkan-sen is directed downwards which predicts further downside movement in the short term. The Kijun-Sen is also directed downwards which predicts further downside movement in the long term. Senkou Span A and Senkou Span B crossed, as expected, and formed a sell signal; the cloud itself changeв its movement to downside. Chinkou Span is located below the price graph, which also indicates downtrend.
Bollinger Bands:
This indicator shows downside movement. The lines are expanding and directed downwards. This fact supposes further downside movement.
MACD:
This indicator shows downside movement at the moment. This predicts further downside movement. In case MACD reverses up, this will denote the beginning of correction.
Trading recommendations:
At present the USD/CHF pair is now characterized by downside movement. Current target is 0.9373. Stop loss should be placed above Kijun-Sen (0.9775). In case MACD reverses, short positions should be cut manually.
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.
