FX.co ★ USD/CHF technical analysis and trading recommendations for October 1

4-hour timeframe

Overview:
Sell signal with the target to 0.9781 is continuing. However, yesterday this signal weakened as the price fixated above the Kijun-Sen. To continue trading it is recommended to wait for the strengthening of the current sell signal, in particular when the price is below the Kijun-Sen. In whole the signal is confirmed and strong as the price is below the Ishimoku cloud and the Chinkou Span is below the price curve. The downside movement is more preferable now. It should be mentioned that the price is under the pivot level of 0.9911 and next target for the downtrend is the first support level of 0.9704. In case the price rebounds from this level, the side way trend or correction may happen. If the price breaks through this support level, we will have next target for movement to 0.9573. The Chinkou Span is below the price curve, thus confirming the bearish sentiment. The Bollinger Bands show the downward movement, the lines are diverging and directed downside. The MACD is ascending thus indicating the correctional movement.

Trading recommendations:
Currently, it is recommended to trade short with the target to 0.9702. Stop-loss is set above 0.9795. If the MACD reverses up, we enter the market with short positions.

In addition to technical image one should take into account the fundamental data and the time of their release.

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.