USD/CHF Technical Analysis and Trading Recommendations for March 30, 2012
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On March 30 the USD/CHF pair (as other pairs) has completed the correction. Therefore, the pair is likely to resume the movement towards the 0.8900 level in few hours. The current signal for Sell-deals is confirmed and strong as Chinkou Span is located below the price chart and the price is still located below the Ichimoku Cloud. Thus, the target for descending movement is seen at the support level 0.8996. In case it has been passed through, the new target for bearish trade – the third support level 0.8996 will be available. The downside movement remains relevant as long as the price is located below the Kijun-Sen (0.9075). While bearish trade above this line it is recommended to place Stop Loss. In case the price goes higher than this line, the signal for Sell deals will weaken and the further development of the downside movement will be questioned. Chinkou Span is located below the price chart confirming the signal for Sell-deals and indicating the bearish mood on the USD/CHF market. Bollinger Bands indicates the possible end of the descending movement or too long correction (which is more likely); lines are narrowed and directed downwards that is why it is recommended to consider short positions. MACD is directed downwards indicating the current resumption of trend’s movement. Thus, the indicator allows opening new sellers orders. The new correction can be identified (as it was earlier) by MACD reversal to upwards.
On the USD/CHF market it is recommended to consider short positions with the level 0.8996 seen as targets. When this level has been passed through, the next target for Sell-deals will be seen at the 0.8925 level. In case this line declines, Stop Loss can be placed after it. After the MCAD reversal it will be possible to reduce or close manually the Sell positions. With a profit of 50-60 pips Stop Loss can be placed to the zero area. Take profits can be set 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:
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
3 yellow lines
Red line and the histogram with white bars in the indicators window.
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Published: 30 Mar 2012, 10:32 UTC+00