Last Tuesday’s signals were not triggered, as there was no bearish price action at 0.9640.
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 Trade
Long entry following a bullish price action reversal upon the next touch of 0.9637.
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
Last Tuesday I thought that the only possible opportunity which might set up in this currency pair was a strongly bearish reaction following a pull-back to the obvious inflection point at 0.9640.
The price broke above that level quite quickly, and then used it as new support to move up as the final leg of a bullish over and under pattern.
That support level at 0.9637 remains intact, and there is plenty of resistance above. We may see a relatively high period of volatility today as the SNB will be making its quarterly report on monetary policy. Therefore, I think any convincing reversal at support or resistance in any direction could produce a good set-up later. I have no directional bias ahead of the SNB’s guidance.
There is nothing important due today concerning the USD. Regarding the CHF, the SNB will release their Monetary Policy Assessment at 8:30am London time.