Yesterday’s signals were not triggered, as the price never reached 0.9745.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trade
Short entry following a bearish price action reversal upon the next touch of 0.9745.
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
I wrote yesterday that it looked very likely that the price would consolidate today, and that trading would thin out towards the end of the London session, so I did not see any good trading opportunities as likely to arise.
This was a good call. Over the past few hours we have seen the USD strengthen and we are now seeing the price here move up accordingly. Although the price has not fallen for a while, and we are at the start of a calendar month which is more likely than usual to produce a trend change, there is strong long-term weakness in this pair, so I would still be very interested in a short trade from a bearish reversal at the resistance level at 0.9745, confluent with the big psychological number at 0.9750. Following a strong bearish reversal at or near that level, I would take a bearish bias.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.