Last Thursday’s signals were not triggered, as unfortunately the high of the day was just a pip or two below the resistance level at 1.0025, but the level did act as a good cap.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be taken before 5pm London time today.
Short Trades
Go short following a bearish price action reversal upon the next touch of 1.0025 or 1.0058.
Put 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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade
Go long following a bullish price action reversal upon the next touch of 0.9985.
Put 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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 bearish channel was looking more reliable, and that the resistance at 1.0025 looked very attractive and obvious as a good place for a short trade entry if there was a strong bearish rejection there at the first attempt to break above it. This was a great call and has been proven right over the past few days, but unfortunately the price never quite reached the level last Thursday.
The outlook is generally bearish but the support at 0.9985 may produce a strong double bottom that could see the beginning of a change. There are three support levels between there and 0.9957 which could well be hard to break, so I am not taking a bearish bias unless there is a retracement and another rejection of 1.0025.
There is nothing of high importance due today concerning either the CHF or the USD.