Yesterday’s signals were not triggered, as the bearish price action took place a little way above the resistance level identified at 0.9982.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 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 did not look attractive to trade, with the next good move slightly more likely to be downwards, best possibility would be a bearish bounce off 0.9982. This wasn’t a bad call as although the price did not respect the level absolutely, it did take a bearish turn in its area, but its still very unsatisfying. The price is moving little, and action remains choppy and unpredictable. It seems completely impossible to make any technical case why the price should move in a particular direction, so I would avoid trading this pair for now.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.