4H
General situation:
On March 23 the USD/CHF pair again was trying to begin the ascending part of the trend towards the Ichimoku Cloud. The signal for Buy-deals was formed but it is not confirmed yet and weak, as the Chinkou Span remains below the price chart and the price is still located lower than the Ichimoku Cloud. Therefore, the target for the uprising movement is seen at the first resistance level 0.9281. It is recommended to open the long positions with this objective only when the price is fixed above the Ichimoku Cloud. In case this level has been overcome, the new target – the second resistance level 0.9406 – will be available. Upward movement remains relevant as long as the price remains above the Kijun-Sen (0.9130). While bullish trading below this line it is recommended to place Stop Loss. If the price goes below this line, the further elaboration of the upside movement will be questioned. Chinkou Span is located below the price chart. This fact is not considered as a confirmation of the current signal for Buy-deals and indicates the bearish mood at the USD/CHF market. Bollinger Bands shows the end of the downside movement, lines are not expanding and directed sideways. Thus, it is recommended to wait until the lines are expanded to one side, as the situation is controversial. MACD is directed downwards indicating the descending movement. Therefore, the indicator does not allow opening new buying orders, as these positions are not considered as relevant anyway due to the weak signal. The new signal for Sell-deals is very likely to be formed soon.
Trading recommendations:
On the USD/CHF market it is recommended to wait until the strengthening of the current signal (if this happens). After that it will be possible to consider long positions with targets seen at the 0.9281 level. If the price passes this level through, the level 0.9406 will be considered as target. Stop Loss is to be placed below the point 0.9130. if this line goes higher it will be possible to place Stop Loss after it. When the long positions are to be opened, MACD should be directed upwards. With 50-60 pips of profit Stop Loss can be placed to the zero area. Take profits are to be placed a bit 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.
