Yesterday’s signals were not triggered as there was no bearish price action at any of the key resistance levels during the London session yesterday.
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 0.9935, 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 Trade
Go long following a bullish price action reversal upon the next touch of 0.9865.
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 the longer the price failed to break above 0.9865, the more likely there would be a retracement next down to at least the 0.9800 area. This was an OK call as the level broke quickly and the price continued to rise. There is still some bullish momentum as the U.S. Dollar remains strong, but the closer the price approaches to the parity level at 1.000 the harder it will be for it to rise further, probably. The level at 0.9935 has historically been quite strong so it should be interesting to watch. I have no directional bias on this currency pair today.
There is nothing important due today concerning either the CHF or the USD.