Yesterday’s signals were not triggered as unfortunately the bullish doji reversal closed just a pip or so below the support level identified at 0.9986, however the level was quite accurate as the low of the day.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 1.0025 or 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 Trade
Long entry following a bullish price action reversal upon the next touch of 0.9985.
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 picture had become more bearish as the USD weakened and the former support at 1.0028 flipped to become new lower resistance. It was also more obvious that the price movement was contained by a bearish price channel. This was a good call as the price continued to fall bearishly before eventually turning around just below the support level I had identified at 0.9986.
The price channel shown in the chart below has been adjusted accordingly and now the trend lines run perfectly symmetrically which is always a good sign of improved reliability. The resistance at 1.0025 looks very attractive and obvious as a good place for a short trade entry if there is a strong bearish rejection there at the first attempt to break above it, so I would take a bearish bias if that scenario plays out later.
There is nothing of high importance due today regarding the CHF. Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.