Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
- Short entry following a bearish price action reversal upon the next touch of 0.9845 or 0.9930.
- 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
The US Federal Reserve policy, supportive of further rate hikes after raising interest rates for the third-time last week, continue to support more strength for the US dollar and increased risk appetite, prompting this pair to move higher to the 0.9821 resistance level, the highest for more than a month. The policy of the Swiss central bank continues to support negative interest and intervention in the currency market to weaken the Swiss franc. The divergence of policy between the two banks will continue to be an important factor for the continuation of the pair's bearish move.
Regarding the CHF, there will be the release of the retail sales data. Regarding the USD, there will be the release of the ISM industrial index and spending on construction.