carry trade combined with Ichimoku analysis USD-CHF

Negative deposit rates will be implemented by the Swiss National Bank on 22nd January 2015. US looks set to raise interest rates in mid-2015. Fundamentally, the USD looks like it will appreciate against the CHF, given low growth and possible deflation in the Eurozone.

The monthly Ichimoku looks very bullish December's candle has closed above the Ichimoku cloud, the first indication of a possible long term upward trend. Also, the cloud projected forward has turned green, another indication of a trend reversal. The conversion line looks set to move above the base line, which when happens, will give a strong bullish signal. Further confirmation of an upward trend will be given when the lagging line moves above the cloud.

Next resistances, indicated by the peaks of the lagging line, lies at 1.1560 and 1.2150.

So the target for a long trade will be placed at 1.1560 with a stop loss at 0.9347, entry @ 0.9900.

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