Yesterday’s signals may have triggered a mildly profitable long trade at 0.9907, although the bullish price action there was not really strong enough to be technically valid.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
Go short following a bearish price action reversal upon the next touch of 0.9953 or 1.0010.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9907, 0.9885, 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 the price was sitting on the support level at 0.9907. The best approach here was to watch whether this level broke down or held during the early part of the London session. I would be bearish if the price can get established below it, while not being so enthusiastic about being bullish above it. I was wrong to favour the bearish side but correct to see the level as pivotal for the day, as it provided the floor. The price chart below shows a clear but wide bearish channel, with the price very close to a key resistance level at 0.9953, which is likely to be the pivotal level for today. There is some life in this pair, and there may be good opportunities here fading reversals at any important horizontal level or trend line. I have no directional bias.
There is nothing important due today concerning either the CHF or the USD.