Yesterday’s signals provided a mildly profitable long trade following the bullish outside candlestick which rejected the support level identified at 0.9905 and triggered an upwards movement.
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, 0.9978, 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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9905 or 0.9885.
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 technical picture remained dominated by the bearish channel which could be seen within the price chart. Direction looked uncertain as there were a few historic inflection points. I thought the more medium-term direction would increasingly be influenced by whether any trend lines reached hold or break. In fact, it was the support level of 0.9905 which was the pivotal level of the day, producing an upwards movement which has just broken an inner bearish trend line. The U.S. Dollar is relatively strong, so it would not be a surprise is the upwards movement persists, but the resistance level at 0.9953 is likely to be strong, and the level above that at 0.9978 even stronger still, so I still have no directional bias and see any reversals at key levels as interesting in this pair.
There is nothing important due today concerning either the CHF or the USD.