Yesterday’s signals might have produced a losing long trade at 1.0058 although the action here wasn’t really bullish enough to justify a long entry – much depended upon interpretation.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 1.0056 or 1.0066.
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
Long entry following a bullish price action reversal upon the next touch of 1.0025 or 0.9965.
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 yesterday that in the unlikely event that the price broke above 1.0125 later today, I would take a bullish bias at that point. Otherwise, trading any firm rejection of a key level in the direction of the rejection was likely to be the best trading strategy to take. I was right about not being bullish below 1.0125, and the rejection at 1.0058 was arguably not “firm” but could have been interpreted that way.
The picture now is more bearish, with the former support at 1.0058 flipping to become new lower resistance, but the support at 1.0025 still looks strong and has not yet been tested. I think a long trade here if there is a firm bounce at 1.0025 later could be a good potential trade, but a short off the 1.0056 area could also be a good short trade. I’d take a bearish bias if the price gets established below 1.0025 and a bullish bias if above 1.0066.
There is nothing of high importance due today concerning the CHF or the USD.