USD/CHF Signal Update
Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Go long after bullish price action on the H1 time frame following the next touch of 0.9949 or 0.9902.
Put the stop loss 1 pip below the local swing low.
Move 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
Go short after bearish price action on the H1 time frame following the next touch of 1.0043.
Put the stop loss 1 pip above the local swing high.
Move 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.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/CHF Analysis
This pair has trended bearishly for the past two weeks, and while this trend is still intact, we are getting initial signs of a possible reversal. Technically, a break up above the bearish trend line and the confluent 1.0043 level shown in the chart below would suggest an end to this downwards move and the start of a recovery. The USD/JPY is also in a very similar position with gives strength to the chance of a successful reversal, especially if the same break happens in both currency pairs at the same time.
I am not very confident in any bullish reversal which might take place following through very significantly, as although this pair can still be said to be in a long-term upwards trend, it is weak.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.