Yesterday’s signals did not trigger any trades as the resistance was not quite reached and the support was only reached after the specified time slot.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today, over the next 24-hour period only.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 0.9985 or 1.0000.
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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9871.
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.
Remove 50% of the position as profit when the price reaches 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
I had no bias yesterday and looked only to fade key levels. This was a very accurate forecast, as the price spent the day moving between the key levels, both of which held. This suggests a congested and ranging technical picture. I think fading the same levels will still be valid today, but I also see short trades as having greater potential to move further as we now have an interesting confluence of horizontal resistance and a bearish trend line close to the parity level. Beyond that, I have no directional bias today.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time..