Yesterday’s signals were not triggered, as the bullish price action took place slightly below 1.0028.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trade
Short entry following a bearish price action reversal upon the next touch of 1.0058.
Place 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.
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 1.0028 or 0.9986.
Place 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.
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.
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 bulls and bears seemed evenly balanced, so the key levels were likely to hold. If the price could trade below 1.0028 for a couple of hours, that would probably be a bearish sign, but overall, I thought there will be little movement in this currency pair today. This was a fairly good call, as the pivotal level was very close to 1.0028 and provided the low of the day.
The technical picture is unchanged, I just adjusted the nearest support level down a little. Key levels look like holding and the price seems to be going nowhere, although there is a hint of the beginning of a more bearish trend so a short trade from a firm rejection of the resistance at 1.0058 could be an interesting opportunity especially if it happens early in the London session – I would take a bearish bias if that sets up.
There is nothing of high importance due today regarding either the CHF or the USD.