Last Thursday’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 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 last Thursday that there was some bullish momentum but that I had no directional bias. I should have had a little more faith in the rise as it did continue, but I also noted that the rise was likely to falter as we got closer to the parity level. We are seeing some evidence of this now as it looks as if the price has turned bearish from an area very close to the resistance at 0.9982. I still have no firm directional bias, but downwards movement looks more likely today that upwards movement.
There is nothing important due today concerning either the CHF or the USD.