4H
General picture:
On March 6 the USD/CHF pair followed the tendency of euro and has also passed though the Ichimoku cloud confirming the current signal for Sell-deals and the relevance of the long positions. The current signal is considered as strong and confirmed, as Chinkou Span is located above the price chart and the price is higher than the Ichimoku Cloud. Therefore, the target for the ascending movement is seen at the first resistance level 0.9214. In case this level is passed through, the new target for the uprising movement – the second resistance level 0.9289 – will be available. The upward movement remains the same as long as the price is higher than the Kijun-Sen (0.9050). When bullish trading below this line it is recommended to set Stop Loss. The same is for the case, when the price goes lower than this line, as the signal for BUY-deals will weaken and the further development 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 bullish mood of the USD/CHF pair. Bollinger Bands indicates the continuation of the upward movement; the lines are expanded and directed upwards. Thus, it is recommended to consider the long positions. MACD is directed downwards indicating the corrective movements showing the current corrective mood. Therefore it is better to refrain from opening the long positions. In case the indicator reverses to upwards, this can be considered a sign for opening the long positions.
Trading recommendations:
As to the USD/CHF market, it is recommended to open the long positions with target seen at the 0.9214 level. When this level is passed through, the target level for BUY-deals will be located in the point 0.9289. Stop Loss is to be placed lower than 0.9050. In case this line increases, the Stop Loss is to be placed after it. It is recommended to open the orders in case the MACD direction reverses to upwards. With 50-60 pips profitability it is possible to place Stop Loss in the zero area. Take Profit orders can be set a bit lower than the target levels.
Apart from the technical picture it is necessary to consider the fundamental data and the 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.
