4H
General situation:
Having overcome the first support level 0.9099, on February 24 the USD/CHF pair continued the descending movement approaching the second support level 0.8998. The current signal for SELL-deals is strong and confirmed as the Chinkou Span is located below the price chart and the price has passed through the Ichimoku Cloud. Therefore the downside targets are seen at the second support level 0.8998. In case it has been overcome, the third support level 0.8898, which is considered as the new target for the downward movement, will be available. The descending movement remains the same as long as the price is lower than Kijun-Sen (0.9095). While bearish trading above this line it is recommended to set the Stop Loss order. Also Stop Losses are recommended in case the price passes this line through. Therefore the signal for SELL-deals will weaken and the further development of the downside movement will be questioned. Chinkou Span is lower than the price chart confirming the current signal for SELL-deals and reflecting the bearish mood of the participants on the USD/CHF market. Bollinger Bands shows the continuation of the downward movement, lines are expanding and directed down. Therefore the short positions are recommended to be considered. MACD is directed downwards indicating the current descending movement and enabling to open the short positions before the correction. The beginning of this correction will be marked by the upward movement of MACD.
Trading recommendations:
As to USD/CHF pair, it is recommended to consider the short positions with targets seen at the 0.8998 level. In case the price passes through this level, the 0.8898 level will be considered as target for short positions. Stop Loss is to be placed higher than the 0.9095. If this line goes down, it will be possible to place the Stop Loss after it. In case MACD reverses upwards, it will possible to reduce the short positions. With 50-60 of profit the Stop Loss can be set in the zero area. Take profit orders can be placed a little bit higher than the target levels.
Apart from technical picture it is necessary to take into account the fundamental data and 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.
