Yesterday's signals were not triggered, as there was insufficiently bearish price action at 0.9978.
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 0.9978 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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9922 or 0.9905.
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 resistance level at 0.9978 looked especially attractive for a potential short trade, although I had no directional bias. The level was pivotal, but didn’t quite hold before the bearish turn, which was a shame. We are seeing short-term bearish momentum as London comes online, so I take a weakly bearish bias below the upper bearish trend line shown in the price chart below.
There is nothing important due today concerning either the CHF or the USD.