Last Thursday’s signals were not triggered as there was no bullish price action at 0.9950.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Short Trades
- Short entry after bearish price action on the H1 time frame following the next touch of 1.0050 or 1.0111.
- 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 Trades
- Long entry after bullish price action on the H1 time frame following the next touch of 0.9993, 0.9971, or 0.9929.
- 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 broke down reasonably strongly with Friday’s directional movement, but has found support around the parity level which is not a surprise. However, the price seems to be reluctant to start coming back up, whereas the highly positively correlated EUR/USD and GBP/USD currency pairs seems to be moving with more directional conviction, suggesting that better opportunities lie away from this pair.
Any sharp moves down to a key support level below parity could be a good buy, following a reversal.
There is nothing scheduled today concerning either the CHF or the USD.