FX.co ★ Technical analysis of the currency pair USD/CHF for 06.07 – 10.07

Daily timeframe.
Ishimoku:
At the diagram we can clearly see the downward movement, but there are some signs of trend reversal. The price stood above Tenkan-sen and Kijun-sen lines. Tenkan-sen turned out and now it is up — directed, however the fact that the price is above Tenkan-sen leaves in a doubt the further prospects of a downward trend. At present, a possible reversal can take place, for its acknowledgement price fixing-in above Kijun-sen is required, thereafter — further confirmation from other Ishimoku indicator lines and from other reversal indicator lines. Kijun-sen is still down-directed signaling that the descending motion may recover. The purchase signal has already formed and Chinkou span confirmed it, so a lot of indicators are signaling about the possible beginning of the up — going movement. You should increase long positions now, to the upper level of Bollinger band as a minimum, thereafter, in case, it would be broken through, the upward trend is possible. Tenkan-sen and Kijun-sen lines are the support levels for the current movement. If the price fixes below Tenkan-sen, the descending motion probably will recover the possibility of cancelling the current purchase signal will be high. The resistance level for the price at the moment is Ishimoku indicator borders. It continues its decreasing movement and narrowing a little, which signaling about the possible down — going trend completion. Chinkou Span is above the graphs, which also signaling about the upward movement. In case, the price strengthens above Kijun-sen, the price target will be the low border of Ishimoku indicator.

Bollinger Bands:
This indicator shows a sideways movement. The bands narrowed and directed aside. As we can see, the price jumped from the middle Bollinger band giving a suggestion about a possible up-going motion continuation and strengthened above the middle band which means a possible price motion back to the upper line. The down — going motion will be considered in case the Bollinger bands are down — directed. In the nearest time the sideways movement is also possible in the Bollinger bands\' zone, at the breaking through of which the trend motion will begin. Consequently, you have to wait for this breaking through in order to determine the trend direction.

MACD:
This index shows a possible upward trend outset at this time. For more confidence in the ascending movement it is necessary to wait for this signal confirmation. Now the most possible variant of events\' development is a sideways movement.


Explanations to the illustration:
Ishimoku indicator:
Tenkan-sen — a red line
Kijun-sen — a blue line
Senkou Span A - light — brown dotted line
Senkou Span B — light — purple dotted line
Chinkou Span — a green line

Bollinger bands indicator:
3 yellow lines

Indicator MACD:
A red line and a hystogram with white bars in the indicator\'s windows.


Have a good trading.
06 July, 2009
Stanislav Polyanskiy.