Yesterday’s signals may have produced a long trade entry from the rejection of the support level at 0.9637, but I have little confidence in that trade, so it would probably be wise to exit from it.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today
Short Trades
- Short entry following a bearish price action reversal upon the next touch of 0.9691, 0.9709, or 0.9723.
- 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.
Long Trades
- Long entry following a bullish price action reversal upon the next touch of 0.9636 or 0.9605.
- Put the stop loss 1 pip below the local swing low.
- 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 25 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 last yesterday that the short-term price action was suggestive of a possible bearish reversal at a medium-term bearish trend line, which is shown in the price chart below. This turned out to be a good call as the price was held at the bearish trend line, as shown below. The nearest support level also held. This has produced an uncertain picture with little movement. It is likely that this state will continue with only minor movements today during the London session, with the market looking to the major FOMC releases tonight which should bring more volatility and possibly direction.
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 Statement, Federal Funds Rate, and Economic Projections at 7pm, and the usual press conference half an hour after that.