Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today
Short Trades
- Go short following a bearish price action reversal upon the next touch of 0.9982 or 1.0010.
- 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.
Long Trades
- Go long following a bullish price action reversal upon the next touch of 0.9918 or 0.9898.
- Put the stop loss 1 pip below the local swing low.
- 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 25 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 as if the price had turned bearish from an area very close to the resistance at 0.9982. I still had no firm directional bias, but downwards movement looks more likely today that upwards movement. In fact, the price has just gone sideways in very choppy action, and still hasn’t even hit the level at 0.9982. This pair does not look attractive to trade. The only possible set-up I see is a failure when 0.9982 is finally hit followed by a strong fall which would signal the price moving down by a meaningful amount. Yet I think it is very likely that there will be better opportunities elsewhere so I would stay away from trading this for the time being.
There is nothing important due today concerning either the CHF or the USD.