Yesterday’s signals were not triggered, as there was no bearish price action when the level at 0.9908 was reached.
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 Trade
Go short following a bearish price action reversal upon the next touch of 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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 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
The action yesterday was more bullish than I had expected, but it still looks unclear, conflicted and aimless. However, the short-term action close to the nearest resistance level going on now (just before the London open) suggests that we are going to see a move down over the coming hours. I am more comfortable being bearish than bullish as although the Dollar is quite strong, the price has reached the parity level of 1.0000 recently and seems as if it might be beginning a long-term move down from that level. If it is happening, it is happening very slowly.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time, followed by Crude Oil Inventories data at 3:30pm.