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 taken 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 0.9913 or 0.9936.
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 0.9827.
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 there been a new development with some more strongly bullish price action printing new support at 0.9827, and it looked like the start of a bullish pattern. This meant that I was now very doubtful about the gentle bearish bias I had and would step aside from trading this pair for a while until the picture becomes clearer. This was a good call as the price has continued to rise and even break above the two lower, bearish trend lines which are shown in the price chart below. This suggests short-term bullishness but as the price rises to approach the round number at 0.9900 resistance should start to make itself felt. It should still make sense to look for bearish reversals once the price gets to 0.9913, just be careful not to get in too early.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of CPI data at 1:30pm London time.