Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today over the next 24-hour period.
Short Trades
Go short following a bearish price action reversal upon the next touch of the bearish trend line shown in the price chart below, which is currently sitting at approximately 1.0021, or after a reversal at either 0.9985 or 1.0005.
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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9939.
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.
Take off 50% of the position as profit when the price reaches 25 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 outlook looks a little more bullish as the price has printed a couple of flimsy but real resistance levels close to the parity level and below. I took no directional bias yesterday. The price has been consolidating within a narrow range for some days, looking a little bearish after a long, strong bullish move which played out over two months. At the time of writing, the previous hour has seen a strong push up, which has not yet reached either of the resistance levels. A bearish turn at the resistance could provide a short trade entry. If taken, it would probably be advisable to be conservative with profit taking.
There is nothing due today concerning either the CHF or the USD..