USDCHF Technical Analysis - Monthly Forecast for 2015: Ranging or Breakout?
MN price:
The price crossed Senkou Span A line of Ichimoku indicator and came to the cloud for ranging market condition. Senkou Span A line is the border of Ichimoku cloud which is virtual border between primary bullish and primary bearish market condition. The price crossed this border and it is located in the bullish zone for now. If the price is located inside the cloud so it is indicating the secondary ranging. So, we are having secondary ranging within primary bullish market condition for this monthly timeframe.
As it is primary bullish so the key level with this situation is the resistance one, and it is 0.9596 in our case.
Chinkou Span line of Ichimoku indicator came to be very close to the price and ready to break it from below to above for good breakout.
- if
MN1 price will cross 0.9596 resistance level on close
monthly bar together with Chinkou Span crossing the price from below to above so the bullish trend will be continuing for whole the next
year for example. It may be fulyl trend market in this case (just an uptrend only).
- if not so the price will be ranging between 0.9681 resistance (Senkou Span B line of Ichimoku indicator) and 0.8698 support level with the possibility to reversal from primary bullish to the primary bearish market condition.
| Resistance | Support |
|---|---|
| 0.9596 | 0.9125 |
| 0.9683 | 0.8698 |
W1 price:
If we look at weekly chart so we can see that the secondary correction is going on within primary bullish for the second week from now. The nearest resistance 0.9683 and if it is broken so the correction will be finished and the primary bullish will be continuing.
To make it shortly - I am expecting the secondary ranging market condition for the next year which may be good for martingale systems, for counter trend strategies and for scalping for example.
- Recommendation to go long: watch MN1 timeframe for the price to break 0.9596 resistance level for possible buy trade.
- Recommendation for short: N/A
Just about patterns. This is formed/developed retracement pattern for uptrend:
and it is forming Retracement pattern which may be indicate the possible downtrend in the future (related to monthly timeframe as well):
Thus, it may be ranging market condition for 2015 with very high probability for it.
