Yesterday’s signals produced a bullish long trade following the hourly bullish engulfing candle rejecting the support level identified at 0.9935. This trade never quite reached the minimum 20 pips profit and might have run its course by now so perhaps should be closed immediately for a very small loss.
Today’s USD/CHF Signals
Risk 0.50% per trade.
Trades may only be entered between 8am and 5pm London time today.
Short Trade 1
* Short entry after bearish price action on the H1 time frame following the next touch of 1.0000.
* 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.
Long Trade 1
* Long entry after bullish price action on the H1 time frame following the next touch of 0.9935.
* 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.
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
This pair is in an interesting position. Yesterday I saw 0.9935 as potential but not high-quality support, and that is exactly how the bounce from that price played out. Above, we have a readjusted trend line below parity which has continued to hold the price, as well as two longer-term bearish trend lines above that. These 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.
There is nothing due today regarding the CHF. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.