Last Thursday’s signals produced a losing short trade following the bearish pin candlestick which rejected the resistance level at 0.9961.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal upon the next touch of 0.9935.
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 0.9892.
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 the price seemed to be in between levels and did not look likely to make firm, strong movements in either direction, so there were likely to be better opportunities elsewhere. This was a good call.
There is little change to that situation, the action has flattened out considerably and is quite choppy. There are likely to be better opportunities elsewhere.
The picture is slightly more bearish, with a new lower resistance level at 0.9935 which might produce a profitable short trade for a conservative profit target.
There is nothing of high importance due today regarding either the USD or the CHF.