Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be taken 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 0.9937, 0.9985, or 1.005.
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 following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9887 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
Last Thursday I noted that the resistance level at 0.9985 looked like it was going to hold, taking a bearish bias. This turned out to be a good call, as the resistance did hold and turned the price around to make a move down.
Although bears have dominated since Thursday, I have no directional bias today, because the key levels shown in the price chart below all look strong and evenly spaced, so I think reversals at any of those levels could be good trades, whether they are in the long or short direction. Over the longer term, I think the price is more likely to move down by 100 or 200 pips that get to 1.0100 or 1.0200 in the other direction.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.