FX.co ★ USD/CHF Technical Analysis and Trading recommendations for April 6, 2012

4H

General picture:
On April 6 the USD/CHF pair continued the ascending movement and has overcome another resistance level. Presently MACD indicates a correction. The current signal for Buy-deals is confirmed and strong as Chinkou Span is fixed above the price chart and the price has overcome the Ichimoku Cloud. Therefore, the targets for uprising movement are seen at the third resistance level 0.9231. in case this levels has been overcome, the new target for bullish trading – the resistance level of the bigger timeframe 0.9449 – will be available. The ascending movement remains the same as long as the price is higher than Kijun-Sen (0.9110). While bullish trading above this line it is recommended to place Stop Loss. If the price goes below this line, the signal for Buy-deals will weaken and the further development of the ascending movement will questioned. Chinkou Span is located above the price chart confirming the current signal for Buy-deals and points at bullish mood on the USD/CHF market. Bollinger Bands shows the current ascending movement, lines are expanding and directed upwards. Therefore, it is recommended to consider the long positions. MACD is reversed to downside providing a signal that the correction has begun. Thus, the indicator does not allow to open new buying orders though in case MACD reverses to upwards, long positions will be relevant again.

Trading recommendations:
On the USD/CHF market it is recommended to take into account long positions with target seen at the level 0.9231. If the price passes this level through, the target for purchasers will be seen at the 0.9449 level. Stop Loss is to be placed below the point 0.9110. if this line goes higher Stop Loss can be placed after it. New long positions are recommended to be opened after the MAC reversal to upwards. With 50-60 pips of profit Stop Loss can be placed to the zero area. Take profits are to be placed a bit lower than the target levels (10-15 pips approximately).

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.

If my articles are interesting and useful to you, you can vote for me in Analyst of the Year contest