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 0.9645 or 0.9710.
- 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
After the pair collapsed to the support level at 0.9542, its lowest level in five months, towards the end of last week's trades, it rebounded back to the 0.9600 level. On the daily chart, the general trend is still bearish and there won’t be a real opportunity for the pair to correct to the upside without a return to the resistance level at around 0.9800. I prefer to buy the pair on bearish levels, especially near the psychological support at 0.9500. The pair's strong losses were a result of the decline in the US dollar and increased appetite for safe havens, especially the Swiss franc.
There is nothing important due today concerning the CHF or USD.