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General situation:
On March 19 the USD/CHF pair began the downside correction and fixed under the Kijun-Sen. As a result, the signal for Sell-deals was fromed. Presently the signal is weak, as the Ichimoku Cloud is considered as a strong barrier. The current signal for Sell-deals is confirmed and weak as the Chinkou Span is located below the price chart and the price is above the Ichimoku Cloud. Thus, the targets for the descending movement are seen at the first support level 0.9084. It is recommended to open the short positions only if the price passes through the Ichimoku Cloud, strengthening the current signal for Sell-deals. In case this level has been overcome, the new target for bearish trading – the second support level 0.9012 - will be available. The descending movement remains the same as long as the price is below the Kijun-Sen (0.9235). While bullish trading above this line it is recommended to place the Stop Loss. If the price goes higher than this line, the signal for Sell-deals will be weakened and the further elaboration of the downside movement will be questioned. Chinkou Span remains below the price chart confirming the current signal for Sell-deals and indicating the bearish mood on the USD/CHF market. Bollinger Bands shows the beginning of the new downside movement, lines are slightly expanded and directed downwards. Therefore, it is recommended to consider the short positions below the Ichimoku Cloud. MACD is directed downwards indicating the current descending movement. Thus, the indicator enables to open new sell orders but only after the strenghtening of the current Dead Cross.
Trading recommendations:
On the USD/CHF market it is recommended to consider short positions with the point 0.9084 seen as target, but only after the price is fixed below the Ichimoku Cloud. If the price passes through this level, the targets for Sell-deals will be seen at the 0.9012 level. Stop Loss is to be placed above 0.9235; in case this line goes downward, it will be possible to replace Stop Loss after it. While opening the short positions the MACD is expected to indicate the downside movement. With profits of 50-60 pips Stop Loss can be placed to the zero area. Take Profits are to be placed higher 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.
