Last Wednesday’s signals were not triggered as there was no bearish price action when the price reached the resistance level identified at 0.9936.
Today’s USD/CHF Signals
Risk 0.50% per trade.
Trades may only be entered between 1pm and 5pm London time today.
Short Trades
- Short entry after bearish price action on the H1 time frame following the next touch of 0.9971 or 0.9996.
- 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 0.9896.
- 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
There is no long-term trend and the action is flat and range-bound. The price is held down by the confluence of resistance factors that are still present in the parity area, while there are a couple of long-term and strongly supportive levels below above 0.9800. Which way the price will finally break out is a complete guess, and there is no reason to believe it will happen before the FOMC release due on Wednesday.
There is nothing due today regarding the CHF, as today is a public holiday in Switzerland. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, preceded by a minor speech from the Treasury Secretary at 12:45pm.