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 0.9684 or 0.9709.
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
There is no strong trend here, but the picture does look bearish over the medium term. However, the price is somewhat bullish over the short term, which suggests that the nearest resistance level is likely to be reached. If there is a strongly bearish reaction at this level of 0.9684, it might provide an interesting short trade entry after which the price could drop again to make new lower medium-term lows.
It is usually difficult to trade this currency pair, as it is highly susceptible to mean-reverting and unpredictable short-term volatility, due to the ease with which the CHF can be manipulated by the Swiss National Bank. For this reason, I would tend to avoid trading this pair unless something very interesting which really jumps out is going on, and that is definitely not the situation right now.
I have no long trade entry signal as the nearest clear support level is too far away.
There is nothing important due today concerning either the CHF or the USD.