Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 0.9745.
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 0.9761 or 0.9810.
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 yesterday that 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. However, the price continued to rise, invalidating that resistance, and forming instead a new level at 0.9761. The Dollar is strong, although there are no obvious key support levels. It looks quite likely that we will see the price again test 0.9761 and what happens at this level is likely to be the key for today. I would take a bullish bias if the price can get established above that level for an hour or so later. Despite the lack of a clear-cut support line, it looks as if the round number at 0.9700 could be supportive if there is a move down to it.
There is nothing important due today concerning either the CHF or the USD.