FX.co ★ The USD/CHF technical analysis and trading recommendations for October 11

4-hour timeframe

Overview:
Sell signal with the target to 0.9781 is continuing. The current target for the downtrend is the first support level of 0.9557 (since the price is above the pivot level of 0.9675). 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. In this case, the downside movement is more preferable. If the price breaks the resistance level of 0.9557, it will offer the next target for the downward motion – 0.9441 (the second resistance level). In case the price is above the Kijun-sen (0.9650), the sell signal will weaken and it is recommended to cut short positions. The Chinkou Span is below the price chart, thus confirming the bearish sentiment. The Bollinger Bands show the continuation of the downtrend, the lines are converging and directed down. The MACD declines, testifying about the renewal of downside movement.

Trading recommendations:
Currently, it is recommended to trade short with the target to 0.9557 and further to 0.9441. Stop-loss is set above 0.9650.

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.