Yesterday’s signals were not triggered, as although there was bearish price action when the resistance level at 0.9953 was reached, it was not sufficiently strong to justify a trade entry.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 0.9953 or 1.0010.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9907, 0.9885, 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 yesterday that the key resistance level at 0.9953 was likely to be the pivotal level for today. I noted that there may be good opportunities here fading reversals at any important horizontal level or trend line. This was an accurate call, but it wasn’t truly possible to benefit here because the price hardly moved at all. There has been no change to the technical picture over the course of the past 24 hours, with the price still within a wide medium-term bearish price channel which can be seen in the chart below. I still have no directional bias and would look to fade rejections of key levels or trend lines, but I would be bullish above 0.9953.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.