FX.co ★ USD/CHF technical analysis and trading recommendations for June 7

4-hour timeframe

Overview:
As the other currency pairs, the franc likely finished a sideways movement, which was signaled by Bollinger bands. However, though Bollinger bands point out the start of rising movement, Ishimoku has not given a ‘buy’ signal. Therefore, it is recommended to wait for the formation of ‘buy’ signal especially because of if it forms it will be strong and confirmed as the price is already above Ishimoku cloud and Chinkou Span has fixated above the price curve. A current target of the upward motion is the first resistance level of 1.1762. Therefore, it is possible to work out this level but with certain risk. Chinkou Span is placed above the price curve indicating bullish sentiment. Bollinger bands testify to a rising trend – the bands are diverging and up-directed. MACD is increasing and signaling about bullish sentiment.
Trading recommendations:
It is reasonable to wait for a ‘buy’ signal from Ishimoku. But bullish trading with the target at 1.1762 is possible too but risky. In this case, stop loss to place below 1.1580. If MACD reverses downwards, close positions manually.
The chart annotation:
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.