Last Thursday’s signals were not triggered as there was no bullish price action at 0.9904.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered and closed between 8am and 5pm London time today only.
Short Trades
- Short entry following a bearish price action reversal upon the next touch of 0.9961 or 1.0008.
- 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 0.9904 or 0.9848.
- 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 I continued to see this pair as likely to go nowhere and not looking like worth trading. However, I did say that a break below 0.9904 was potentially interesting as the possible start of a stronger bearish movement down to the 0.9850 area, and this did happen later that day. The price has risen from 0.9850 with some strength, topping so far just a little short of the resistance level at 0.9961, which is likely to be the pivotal level today. A sustained break above that level would be a bullish sign, but I would take a bearish bias if there was a strong bearish rejection of that level later, especially if it happens early in the London session. There is no trend and the price is very range-bound, making reversals at key levels in this pair attractive potential trades.
There is nothing important due today concerning either the CHF or the USD.