4H
General situation:
On March 20 the USD/CHF pair continued the descending movement and fixed below the Ichimoku Cloud. As e result, the signal for Sell-deals was strengthened enabling to open the short positions. The current signal for Sell-deals is confirmed and strong as Chinkou Span is located below the price chart and the price is fixed below the Ichimoku Cloud. That is the reason why the first support level 0.9084 is considered as a target for downside movements. In case this level has been overcome, the new target for the bullish trade – the second support level 0.9012 – will be available. The downward movement remains relevant as long as the price is above the Kjun-Sen (0.9210). While bearish trade above this line it is recommended to place Stop loss. When the price goes higher than this line, the signal for Sell-deals will weaken and the further development of the movement will be questioned. Chinkou Span is located below the price chart confirming the current signal for Sell-deals indicating the bearish mood of the USD/CHF market. Bollinger Bands indicates the continuation of the descending movement; lines are expanding and directed downwards. Therefore, it is recommended to consider short positions. MACD is directed downwards and is considered as a signal of current descending movement. Thus, it is possible to open new selling orders and support the already opened orders. When the MACD turns to upwards, this will be the sign of correction.
Trading recommendations:
On the USD/CHF market it is recommended to consider short positions with target seen at the 0.9084 level. When the price passes through this level, the next target for Sell-deals will be seen at the 0.9012 level. Stop loss is to be placed above the point 0.9210. In case this line goes downwards, Stop Loss can be placed after it. With 50-60 pips of profit Stop Loss can be placed to zero area. Take profits can be placed a little 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.
