Last Thursday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.50% 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 0.9739 or 0.9761.
- 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 run.
Long Trade 1
- Long entry after bullish price action on the H1 time frame following the next touch of 0.9654.
- 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 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 continues to behave very technically, behaving itself and rejecting obvious resistance levels. I was correct last Thursday in seeing a continuation of the downwards movement and this move should have also produced minor resistance at 0.9720 as well as the higher levels.
There may not be much opportunity here as the price is now far from either support or resistance, but I see no reason why the bearish bias won’t be maintained so continued downwards movement is the most probable short-term scenario.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.