Yesterday’s signals were not triggered, as there was no bearish price action at 1.0008.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 1.0035 or 1.0046.
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 0.9992 or 0.9971.
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 I saw the level at 0.9957 as potential good support now, but I also saw 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.
This call was too “neutral”, as we are now starting to see a definite though perhaps shaky medium-term bullish trend get established, with new higher support levels printed above 0.9957, and the resistance just above parity at 1.0008 invalidated – both of which are bullish signs.
I think it is likely we will see higher prices today and we might even get a touch of the next resistance level at 1.0035. However, it is quite likely this will happen later, during the New York session, and not before the New York open.
There is nothing of high importance due today regarding either the CHF or the USD.