USD/CHF Signal Update
Yesterday’s signals were not triggered and expired.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Long Trade 1
Go long after bullish price action on the H1 time frame following a touch of the bullish trend line currently siting at around 0.9523.
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.
Long Trade 2
Go long after bullish price action on the H1 time frame following a touch of 0.9385.
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 0.9648.
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
I was correct in forecasting that the resistance at 0.9550 would give way yesterday, but there was no sharp upwards move as I had also thought might happen, Instead the price came back down, forming a new pennant and invalidating the horizontal level at 0.9550 which we can now disregard.
Although pennants tend to show continuations, I am wary of trading a break below the supportive trend line, and I still look instead for a rejection of that trend line giving a long trade. It is probably too late to go short as we already rejected the upper line.
A bullish breakout that returns the price to 0.9648 any time soon would probably hit a great resistant confluence and be a good place to seek a short trade.
There are no high-impact releases due today concerning the CHF. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.