Yesterday’s signals were not triggered as the bullish price action at 0.9997 was insufficiently strong for a long trade entry.
Today’s USD/CHF Signals
Risk 0.50% per trade.
Trades must be taken before 5pm London time today only.
Short Trade 1
Go short after bearish price action on the H1 time frame following the next touch of 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 Trades
Go long after bullish price action on the H1 time frame following the next touch of 0.9958 or 0.9941.
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
The strong increase in value by the British Pound dragged the Euro and Swiss Franc along with it to some degree, and so we saw an extension of the short-term bearish trend moving the price down below the support near the parity level, before support was finally effective at 0.9958. Unfortunately, this support was not reached until after the session.
There is no long-term trend in this pair so decent price action reversals can be traded with equal confidence from either support or resistance levels. The area near 0.9950 looks attractive as there are two support levels close by
.
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.