Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
- Short entry following a bearish price action reversal upon the next touch of 0.9982 or 1.0010.
- 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
- Long entry following a bullish price action reversal upon the next touch of 0.9918 or 0.9898.
- 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 this pair did not look attractive to trade. The only possible set-up I saw was 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 thought it is very likely that there will be better opportunities elsewhere, so I would stay away from trading this for the time being.
This was a good call as the price has continued to go sideways in choppy trading, and still, none of the key levels have been reached. I take exactly the same outlook today as I did yesterday, probably best avoid trading here, next good move slightly more likely to be downwards, best possibility would be a bearish bounce off 0.9982.
There is nothing important due today concerning either the CHF or the USD.