FX.co ★ The USD/CHF technical analysis and trading recommendations for November 18

4-hour timeframe

Overview:
The buy signal with the target level of 0.9854 is still observed. This signal is strong and confirmed as the price managed to fixate above the Ishimoku Cloud and the Chinkou Span is above the price chart. Also the price has overcome the first resistance level of 0.9885 and reached the second resistance level of 0.9961. In case the price strengthens above this level, the next target for movement will be the third resistance level of 1.0111. At present we observe the correction movement against the uprising trend. If the price closes below the Kijun-Sen (0.9850) then this will weaken the current buy signal and it is recommended to cut long positions. The Chinkou Span is above the price graph, thus confirming the current buy signal. The Bollinger Bands indicate the uprising movement, since the lines are diverging and directed upside. MACD is descending, thus pointing to the current correction movement.

Trading recommendations:
Currently, it is recommended trade up with the target to 1.0111; the positions can be opened after the price strengthens above 0.9961. The stop-loss is set below the Kijun-Sen – 0.9850. We enter the market only after correction will end, which will be indicated by the reversal of the MACD to downside.

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.