Yesterday’s signals were not triggered, as there was no bullish price action at 0.9827.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal upon the next touch of 0.9904.
Put 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 I thought 0.9827 would be the pivotal level of the day. I was ready to be bullish if the price bounced strongly there or bearish if it broke strongly below it. The chart below shows what happened – the price broke below the level but quickly recovered to rise above it, and then used it as support. This creates a confusing and uncertain situation. Technically, the support at 0.9827 is now invalidated, but the fact that it held over recent hours makes me feel it has come into play again. On the other hand, it is notable that the price has not risen much, and that there is a large space for a sharp fall below 0.9827. Overall, due to the uncertain signs here, I have no directional bias and would avoid trading this pair today.
It seems there is minor resistance between about 0.9850 and 0.9865.
There is nothing important due today concerning either the CHF or the USD.