Yesterday’s signals were not triggered as the bearish price action took place some way above the resistance level identified at 1.0093.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
Go long after bullish price action on the H1 time frame following the next touch of 1.0000 or 0.9972.
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 1.0058.
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
The price fell heavily yesterday from an area just above the resistance level which had been identified at 1.0093. Despite this development, and the flipping of the level at 1.0058 from support to resistance, the medium-term bullish channel remains intact, as shown in the chart below. If the price does not rise over the coming few days, by next week it will be below its price from 3 months, and if that is combined with a break below the channel, would be very suggestive of the end of any bullish trend.
There is nothing due today concerning the CHF. Regarding the USD, there will be releases of Building Permits, the Philly Fed Manufacturing Index, and Unemployment Claims data at 1:30pm London time.