Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Protect all open trades by 5:30pm.
Long Trades
Go long after bullish price action on the H1 time frame following the next touch of 1.0059 or 1.0003.
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 Trades
Go short after bearish price action on the H1 time frame following the next touch of 1.0111 or 1.0139.
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
There is no long-term trend, although over the long-term this pair is closer to a bullish rather than bearish outlook.
The price remains stuck between 1.0059 and 1.0111 with key levels being quite effective in providing turning points. Over the medium-term, the bears have the upper hand.
The best way to trade this pair before the FOMC release due later would probably be to look for a reversal off a key level.
Regarding the CHF, there will be releases of the Swiss National Bank’s LIBOR Rate and Monetary Policy Assessment at 8:30am London time. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 12:30pm.