Yesterday’s signals produced a profitable short trade following the bearish rejection of the resistant level at 0.9678, which probably should be left to run for the time being.
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 0.9678.
- 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 ride.
Long Trades
- Go long after bullish price action on the H1 time frame following the next touch of 0.9617 or 0.9540.
- 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 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 level at 0.9678 acted as good resistance, but the short-term trend is still bullish, with the price being supported by a trend line. Another movement up to 0.9678 and failure from a retest, plus a break of the bullish trend line, could be another good short trade entry. Note the longer-term bearish trend line connecting the swing highs, which suggests a continuation of the downwards movement once this short-term bullish trend breaks.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Unemployment Claims at 1:30pm, ISM Non-Manufacturing PMI at 3pm, and Crude Oil Inventories at 5pm.