Yesterday’s signals produced a positive short trade following the bearish pin candlestick rejecting the resistance level identified 0.9985. It may be worth holding on for more profit as the entry was close to a possible long-term reversal just under the psychologically key parity level, especially if the price quickly breaks below 0.9913.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today, over 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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9913 or 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 if the price could not rise above 1.0000 soon it was most likely to make a bearish retracement. This was not a very useful forecast, but it was on the right track, as the price has moved down after failing at 0.9985. The Swiss Franc is not especially strong, but this pair often makes long-term reversals at key levels regardless of trend, so a short here close to 1.0000 could be a trade worth holding onto for a while. We can expect progress to be slow as this pair tends to move slowly. Below, the support at 0.9826 looks to be the most significant support level anywhere nearby..jpg "USDCHF")
There is nothing due concerning the CHF. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.