Technical analysis and trading recommendations for the USD/CHF currency pair for January 7, 2010

4-hour timeframe

The whole picture:
The same as the euro the franc is in the side movement. The price strengthened within Ishimoku indicator and after that went down a little. The sideward trend, limited by the channel of 1.0279 (the first support level) and 1.0421 (the first resistance level), is observed for the fourth day. At the moment, Ishimoku lines position is not important as both Ishimoku indicator and Bollinger Bands are showing flat. Because of it, waiting for the sideward movement ending is recommended, after that to define the trend direction. MACD is close to zero level that signals about flat too.
Trading recommendations:
Now is recommended to wait for the situation clearing especially for Bollinger Bands separation and the trend movement start.
The picture clarification:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.
Good luck in trading,
Stanislav Polyanskiy
January 7, 2010