USD/CHF Signal Update
Yesterday’s signals expired without being triggered as there was no bullish price action at 0.9550 or 0.9500.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Long Trade 1
Go long after bullish price action on the H1 time frame following a touch of 0.9384.
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 run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.9549.
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 price reaches 20 pips in profit and leave the remainder of the position to run.
USD/CHF Analysis
The past 24 hours have been very bearish for the USD and this pair is no exception. I had anticipated in my previous forecast a probable break down below 0.9550, which did happen, but I also thought that 0.9500 would be supportive, and I was not right about that.
Looking at the hourly chart below, what is interesting is that you can see how each previous support level flipped very quickly and cleanly to resistance. The price has been hovering just under 0.9500 for a few hours now but has not been able to break above it. As it has been very close to this level for a while a break back up above 0.9500 would be logical to happen soon, but probably without much bullish momentum. Therefore I would only look to go short again at 0.9550 and possibly even at around 0.9525 where there looks to be some resistance too.
The next key support is not until 0.9384.
There are no high-impact releases due today concerning the CHF. Regarding the USD, there will be releases of CPI and Unemployment Claims data at 1:30pm London time, followed by the Philly Fed Manufacturing Index at 3pm.