2012-07-11 13:04:00
1. Current trend of USD/CHF
As we can see on the four hour chart (fig.1), trades have been in the range of 0.9740 – 09800 since the opening session. At the moment, the short-term prospect seems uncertain. Nevertheless, the price has reached its 15-month highs and “bullish” sentiment continues to dominate (fig.2).
2. Important levels (Support and Resistance)
Currently, the price tries to exceed important level of 0.9800. If this resistance level is broken through, the price will rush to the next resistance levels of 0.9860 and 0.9900.
If “the bears” prevents breakdown of the level of 0.9800, long-term correction may be possible. In such case, target levels will be 0.9740, 0.9690 and 0.9600.
3. Best entry/exit points
If the rate of USD/CHF continues to grow, best levels for the long positions will be: 0.9825 and 0.9875, with protective stops at 0.9790 and 0.9550.
If the price declines, it will be better to enter the market around 0.9780 and 0.9725, with stop-losses at 0.9800 and 0.9750.
4. Supporting facts
The MACD histogram is in the positive area, but below the signal line and continues to decline, giving a sell signal. Stochastic Oscillator is in the overbought zone and is generating an opposite signal. So, indicators give conflicting signals, confirming current uncertainty.
As we can see on the four hour chart (fig.1), trades have been in the range of 0.9740 – 09800 since the opening session. At the moment, the short-term prospect seems uncertain. Nevertheless, the price has reached its 15-month highs and “bullish” sentiment continues to dominate (fig.2).
2. Important levels (Support and Resistance)
Currently, the price tries to exceed important level of 0.9800. If this resistance level is broken through, the price will rush to the next resistance levels of 0.9860 and 0.9900.
If “the bears” prevents breakdown of the level of 0.9800, long-term correction may be possible. In such case, target levels will be 0.9740, 0.9690 and 0.9600.
3. Best entry/exit points
If the rate of USD/CHF continues to grow, best levels for the long positions will be: 0.9825 and 0.9875, with protective stops at 0.9790 and 0.9550.
If the price declines, it will be better to enter the market around 0.9780 and 0.9725, with stop-losses at 0.9800 and 0.9750.
4. Supporting facts
The MACD histogram is in the positive area, but below the signal line and continues to decline, giving a sell signal. Stochastic Oscillator is in the overbought zone and is generating an opposite signal. So, indicators give conflicting signals, confirming current uncertainty.
