Yesterday’s signals were not triggered as there was no bullish price action at 0.9935.
Today’s USD/CHF Signals
Risk 0.50% per trade.
Trades must be taken before 5pm London time today only.
Short Trades
* Go short after bearish price action on the H1 time frame following the next touch of 0.9936 or 1.0000.
* 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.
Long Trade 1
* Go long after bullish price action on the H1 time frame following the next touch of 0.9812.
* 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.
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 “signs point to a downwards move and a breakdown of 0.9935 over the short-term as being the most probable outcome. There is no long-term trend, so this pair seems suitable for short-term trading with conservative targets off the nearby key price levels.” This is exactly what happened, with the level now looking as if it has flipped to become resistance. The most interesting feature in the chart below is the very heavy confluence of resistances close to the parity level. Now that the final support level seems to have broken, there is nothing to stop the price falling to new multi-month lows all the way down to 0.9812. This area has been very pivotal in the past, holding up the price over many months.
There is nothing due today regarding the CHF. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.