Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
Go short following a bearish price action reversal upon the next touch of 1.0008, 1.0035, or 1.0046.
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 Trades
Go long following a bullish price action reversal upon the next touch of 0.9957 or 0.9892.
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 yesterday that the Dollar was generally stronger everywhere, and the key pivotal level which may now act as new support was shown at 0.9957 in the chart below. I saw the opportunities as at the extreme price lives near parity (1.0000) and the lower round number (0.9900) if any reversals happened there. I doubted either of these areas would be reached.
This was an adequate call, although the price was a little more bullish than I expected. I would see the level at 0.9957 as potential good support now, but I still see the major opportunities as reversals at the extremes as I note the absence of any real medium or long-term trend here in this pair.
I take no directional bias on this pair today.
There is nothing of high importance due today regarding the CHF. Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.