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 before 5pm London time today, during the next 24-hour period.
Short Trades
Go short following a bearish price action reversal upon the next touch of 0.9936 or 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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9871 or 0.9810.
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 wrote yesterday that fading the levels would still be valid today, but I also saw 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. The gently bearish picture has been reinforced by continued downwards movement, and a new obvious lower resistance level at 0.9936. The short-term price action during the Asian session is also pointing towards lower prices. The U.S. Dollar is likely to be weak until Friday’s New York session, so a long trade at the nearby support should only be entered with great caution, if the set-up is extremely good. I have a bearish bias today.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm London time.