Last Thursday’s signals were not triggered, as neither of the key levels were reached within the specified time.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trade
Go short following a bearish price action reversal upon the next touch of 0.9745.
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
I wrote last Thursday that the price looked as if it would reach the nearest key support level at 0.9679. It did so and made no bounce there, continuing to fall. There are no more key support levels below the current price until close to the round number at 0.9500.
Although we have seen a bullish retracement in recent hours, there is no doubt that the overall picture is bearish. The Swiss Franc was last week’s biggest gainer of all the major currencies and has been rising strongly.
However, it looks very likely that the price will consolidate today, and that trading will thin out towards the end of the London session, so I do not see any good trading opportunities as likely to arise in this currency pair today.
There is nothing important due today concerning either the CHF or the USD. It is a public holiday in the U.S.A. today.