USD/CHF Signal Update
Yesterday’s signals were not triggered.
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 0.9650.
* Place 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.
* Take off 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 after bearish price action on the H1 time frame following the next entry into the zone between 0.9802 and 0.9814.
* Place 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.
* Take off 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 2
* Go short after bearish price action on the H1 time frame following the next entry into the zone between 0.9891 and 0.9913.
* Place 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.
* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
USD/CHF Analysis
Prior to the FOMC release, the price made a high for the day just a few pips beyond the resistance zone I highlighted in yesterday’s forecast. The release was bearish for the USD so it is no surprise that the price has fallen below another supportive area which has now most probably flipped to become resistance. There are no key support levels below all the way down to 0.9650, so a further sharp fall is a possibility, although that probably will not happen just yet.
As always with this pair, support and resistance at round numbers seems to remain very reliable.
Concerning the CHF, there will be releases of the SNB’s Monetary Policy Assessment and LIBOR Rate at 8:30am London time. Regarding the USD, there will be a release of Unemployment Claims and Philly Fed Manufacturing Index data at 12:30pm.