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 before 5pm London time today.
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 Trade
Long entry following a bullish price action reversal upon the next touch of 0.9865.
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 I thought that we were more likely than not to see higher prices today. However, as we get closer to the parity level at 1.000, the more likely a meaningful bearish reversal will become.
In fact, the price fell somewhat yesterday, although it still has not got close to the nearest support level.
This pair has a strong tendency to revert to the mean and behaves quite differently to other major Forex currency pairs, so direction is always difficult to predict. I think the best that can be said is that we are in a consolidation above 0.9900, but I have no useful directional bias today.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of PPI data at 1:30pm London time.