Yesterday’s signals were not triggered, as there was no bearish price action at 0.9988.
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 1.0110.
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
Go long following a bullish price action reversal upon the next touch of 0.9988.
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 a strong break below the supportive trend line, perhaps after another rejection of the resistance level at 0.9988, could see a stronger fall down to at least 0.9918, so I would take a bearish bias if that happened. Alternatively, a bullish break and hold above 0.9988 could be taken as a bullish sign.
Although I had seen a bearish outcome as more likely, and the movement over the day was actually bullish, it was a good call to see 0.9988 as the pivotal level for the day.
The picture now looks even more bullish technically, with 0.9988 flipped to become probably support, while the price seems to be continuing its rise within the bullish price channel shown in the chart below. The pair is also trading above parity at 1.0000 which is another bullish sign. A strong and sustained break above the upper trend line of the price channel, currently sitting at about 1.0040, would be a bullish sign and I would be bullish then, also if there were a retracement and strong bullish bounce at 0.9988.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.