FX.co ★ The USD/CHF technical analysis and trading recommendations for November 25

4-hour timeframe

Overview:
The sell signal had cancelled and new buy signal formed, but since it arose in flat we do not have the final target, and the signal is most probably false. Bollinger bands indicate the flat; in this case until sideways movement is observed the Ishimoku may form a lot of false signals. Consequently, it is needed to wait for the beginning of trend movement, about which Bollinger bands will signal. In case Bollinger bands diverge upside the first target will be the second resistance level of 1.0128 and the buy signal will be confirmed. The Chinkou Span is above the price graph, thus pointing to the bullish sentiment. Bollinger Bands show the sideways movement, the lines are directed sideways and converged, thus indicating the flat and probable change in direction. MACD is ascending, which denotes the uprising movement within the sideways range.

Trading recommendations:
Currently, it is recommended to wait for the divergence of Bollinger bands that will denote the beginning of trend movement. It is not recommended to trade until the flat is observed.

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.