Last Thursday’s signals produced an amazing and extremely profitable long trade entry from the bullish bounce at the identified support level of 0.9827. If the price cannot break above parity soon, it would be wise to exit from any remainder of the position.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today, during the next 24-hour period only.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 0.9985 or 1.0005.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9936 or 0.9913.
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 wrote last Thursday that a bullish bounce at 0.9827 could be a good long trade, although we may well have already seen the low of the day very close to that level. This was the dominant move of the day, producing a technically significant bullish movement, driving the price above all the bearish trend lines. The price is now showing signs of topping out at the resistance levels confluent with the parity area of 1.0000. If the price cannot rise above 1.0000 soon it is most likely to make a bearish retracement. There is a long-term bullish trend in this pair, but it is not very strong, and it looks doubtful that it can get established now above 1.0000. If it does so, that will be a very bullish sign.
There is nothing important due today concerning either the CHF or the USD.