USD/CHF Signal Update
Yesterday’s signals were not triggered as there was no bullish price action when the price reached 0.9902.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
Go long after bullish price action on the H1 time frame following the next touch of 0.9855.
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 0.9950.
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
I wrote yesterday that the bears were stronger than the bulls because the resistance levels were having sharper effects upon the price than the support levels. This has proven so far to be a correct interpretation and we see the same effect at work with the price reaching below the 0.9900 level, where it has not been for a while.
The picture remains bearish, but I do note that we are reaching an area below that was resistant for a long time. It is hard to define but it might be hard for the price to get much lower than recent lows, at least for a while. However, the resistance levels above do look attractive for more short trades.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, ISM Manufacturing PMI at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm.