Yesterday’s signals were not triggered, as there was no bullish price action at 0.9744.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal upon the next touch of 0.9847.
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 Trade
Long entry following a bullish price action reversal upon the next touch of 0.9744.
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 break below the lower trend line was likely to trigger a further move down to 0.9744, where we may see a healthy bullish bounce triggering a long trade entry.
I was watching out for a move down to 0.9744 and then waiting to see what happened if the price got there.
This was a good call as there was a break below the trend line followed by a further move down to 0.9744 and below. There was no bullish bounce at 0.9744 and this level has been invalidated.
We now have a yet more bearish picture, with the U.S. Dollar generally on the defensive and the Swiss Franc rising against it by default.
I would take a bearish bias if the price retraced to the 0.9800 level and failed to break above the area and then made a strong bearish reversal.
A break below 0.9700 today would be a very bearish sign.
There is nothing of high importance due today concerning the CHF. Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 5pm London time.