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 between 8am and 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 this pair was probably best avoided, there was little going on here and I didn’t think there will be any good opportunities soon. I was quite wrong, the price rose steadily and firmly and printed new higher support. There is bullish momentum, but the rise seems to be faltering at a recent swing high at about 0.9955. Interestingly, we are now approaching the parity area, and as this currency pair tends not to trend for very long, it will be interesting to see if we get a major bearish reversal in that area.
I again have no directional bias today.
There is nothing important due today concerning either the CHF or the USD.