Last Thursday’s signals were not triggered, as the bullish bounce at 0.9913 was not fully formed until London closed that day.
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
Go short following a bearish price action reversal upon the next touch of 0.9908 or 0.9936.
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
Go long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9936, 0.9908, or 0.9827.
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 as the price has remained very close to and just under the parity level at 1.000 which is psychologically important, so the Bank’s release could produce the start of a long-term, strong and decisive movement away from this parity level. As it happened, the release itself didn’t contain anything that impressed the market one way or another, but it still may have marked a moment where this pair’s direction become clearer as the price moved slowly but firmly down and away from the resistance below 1.0000. The support level below at 0.9827 still looks strong, but the resistances above the current price look relatively clear cut and suggest we are going to see lower prices in this pair. I have a bearish bias today between 0.9908 and 0.9827.
There is nothing important due today concerning either the CHF or the USD.