USD/CHF Signal Update
Last Tuesday’s signals produced a failed long trade off the bullish trend line early during the London session that narrowly missed its 20 pip target, and so gave a loss.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
Long entry after bullish price action on the H1 time frame following the next touch of 0.9536.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry after bearish price action on the H1 time frame following a re-entry into the zone between 0.9675 and 0.9700.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
USD/CHF Analysis
I forecast earlier that we were going to get a strong breakout from the compression and I was right, it was to the downside when the supportive trend line broke. The previously supportive zone beginning at 0.9700 now looks to have flipped from support to resistance as the CHF finally starts to show some strength, being one of the biggest gainers against a weak USD even before the dovish FOMC release late yesterday.
There is nothing due concerning the CFH. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Existing Home Sales and the Philly Fed Manufacturing Index at 3pm.