Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trades
Go short following a bearish price action reversal upon the next touch of 0.9904, 0.9920, or 0.9935.
Place 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 0.9827.
Place 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 I thought a bearish break below the trend line could see a further sharp fall to the nearest support, which is quite a way lower at 0.9827. I would take a bearish bias today below this trend line. This was an excellent call, as the price quickly broke below the trend line and continued to fall, reaching a low price only about 9 pips above the support at 0.9827 before seeming to find some support. I would be happy to take a bullish bias next but only after the price hits 0.9827 and makes a strong bullish bounce, otherwise the price is most likely to consolidate roughly where it is now. A convincing break below 0.9827, on the other hand, would be a very bearish sign, so I would take a bearish bias there. This will be the pivotal level today, I have little doubt.
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, followed by the FOMC Meeting Minutes at 7pm.