Yesterday’s signals were not triggered, as there was no bullish price action at 0.9865.
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 0.9810.
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 I would take a bearish bias today below 0.9865. This did not work out very well as the price rebounded, invalidating the level. However, there is no meaningful change to the technical picture which is still gently bearish, with the price chart below dominated by descending trend lines below the parity level, exerting gentle downwards pressure on the price. It seems likely that retracements to the areas of resistance above 0.9900 will remain the best trade opportunities in this pair.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.