FX.co ★ USD/CHF technical analysis and trading recommendations for 14 June 2010

4-hour timeframe

Overview:
‘Sell’ signal with target level at 1.1242 keeps on. Therefore, the sales are advisable to consider. The signal is strong and confirmed, as the price has managed to fixate below Ishimoku cloud and Chinkou Span – below the price curve. Also on Friday, we had observed the correction to Kijun-sen area, after that downward movement renewed. Therefore, now it is recommended to bear with intermediate targets at 1.1350 and 1.1223, the second and third support levels. In case of the price fixation below 1.1421, the next target will be the third support level of 1.1350. If the price fixes above Kijun-sen, it is recommended to close short positions. Chinkou Span is below the price curve, which testifies to bearish sentiment. Bollinger bands show falling motion – the bands are diverging and down-directed, indicating continuation of descendant movement. MACD is decreasing, signaling about downtrend.
Trading recommendations:
In the current situation, bearish trading with the target at 1.1350 is advisable. Enter the market after the price fixing below 1.1421. Stop loss to place above 1.1510.
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.