Yesterday’s signals were not triggered, as there was no bearish price action at 0.9945.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today, over the next 24-hour period.
Short Trade
Go short following a bearish price action reversal upon the next touch of 0.9985.
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 0.9871.
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.
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
I had no bias yesterday as trading was likely to be thin due to the public holidays in London and New York. There was a relatively brief spike up which invalidated the resistance at 0.9945 and required the upwards adjustment of the dominant bearish trend line shown in the price chart below. This has made the technical picture somewhat more bullish, so I prefer not to look to the trend line for a potential short trade entry, but instead wait for a pull-back to 0.9985. This is also close to the psychologically key parity level which adds weight to it. I have no directional bias as overall, I think the probable short-term direction of this currency pair looks uncertain.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.