Yesterday’s signals were not triggered as there was no bullish price action at 0.9856.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pmLondon time today.
Long Trade 1
- Long entry after bullish price action on the H1 time frame following the next touch of 0.9788.
- 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
- Short entry after bearish price action on the H1 time frame following the next touch of 0.9961.
- 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.
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 price looked very bearish but might be held by key support around 0.9850. There was a sharp and sudden drop after the London open, but the price could not hold below the 0.9850 area for very long. It looks as if the bullish pull back will continue at least for a while, but the medium and long-term outlooks continue to be bearish.
Yesterday’s move invalidated the closest key support levels so there is no definite level before 0.9788.
There is nothing due today regarding the CHF. Concerning the USD, there will be a release of CB Consumer Confidence data at 2pm London time.