Technical analysis and trading recommendations for the USD/CHF currency pair for January 27, 2010

4-hour timeframe

The whole picture:

A new purchase signal with the target level of 1.0528 on Ishimoku has formed, which the price has not reached yet. Therefore, this level is an intermediate target for the current upward trend. In case of breakthrough at this level, the upward movement continuation is expected. In the event of the price strengthening below Kijun-sen, the purchase signal will weaken and in such case is recommended to cut long positions. The day chart is supporting the variant of the upward trend continuation. A new purchase signal with the target of 1.0766 is working out at it. Bollinger Bands are showing the upward movement – Bands are widening and up-directed that witnesses about the upward trend continuation. MACD is climbing that also testifies for the upward movement.

Trading recommendation:

For now, bullish trading with targets at 1.0528, 1.0587 is recommended. Stop loss to set below Kijun-sen (1.0433).

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 trading,

Stanislav Polyanskiy

January 27, 2010