Yesterday’s signals were not triggered, as neither of the resistance levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trades
Go short following a bearish price action reversal upon the next touch of 0.9640 or 0.9684.
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
There is no strong long-term trend here, but the picture does continue to look bearish over the medium term. The price fell again yesterday, and this was mainly due to the continuing strength of the Swiss Franc.
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 the only example I could see of that setting up today would be a strongly bearish reaction following a pull-back to the obvious inflection point at 0.9640.
I have no long trade entry signal as the nearest clear support level is still too far away.
There is nothing important due today concerning either the CHF or the USD.