Yesterday’s signals were not triggered, as the bearish price action took place above 0.9691 but below 0.9709.
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 0.9701, 0.9709, or 0.9723.
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.
Long Trades
Go long following a bullish price action reversal upon the next touch of 0.9636, 0.9626 or 0.9605.
Place the stop loss 1 pip below the local swing low.
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 25 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
I wrote yesterday that the price probably would not move much until the FOMC releases due later. In fact, the price moved bullishly during the London session before that. The area of resistance centred around 0.9700 held, as then the support did at 0.9637, with the price bouncing bullishly there and moving up again, looking likely to retest 0.9700 now. The best I can say is that there is short-term bullish momentum which is likely to continue until at least 0.9700, but that the resistance up to about 0.9725 is likely to be strong. A solid break above 0.9725 would be a very bullish sign. Much will now depend upon the U.S. GDP data due later.
Regarding the USD, there will be releases of Core Durable Goods Orders and Final GDP data at 1:30pm London time. There is nothing due today concerning the CHF.