Yesterday’s signals were not triggered as there was no bearish price action at 0.9937.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today, over the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 0.9985, or 1.005.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9932 or 0.9887.
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 made no directional call yesterday and there has not been any real change to the technical picture, so I have little to add. I say again, no bias, but the levels look strong and a reversal at either support or resistance could be an equally strong trade. An argument can be made that the bulls look a little stronger than the bears, as we have just had a nicely bullish bounce at a new support level at 0.9932. The only qualification is that the price has been rejecting the parity level at 1.000 for some time now, so the greater long-term potential is probably going to be on the short side.
There is nothing important due today concerning either the CHF or the USD.