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 before 5pm London time today.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 0.9965 or 1.0015.
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 0.9892 or 0.9848.
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 I saw the best opportunity which might arise as a short trade from a bearish rejection following a test of the resistance level at 0.9965 but I warned to be cautious with profits as it was likely to be a relatively slow day in the market, at least in this pair. This was a good call insofar as it was a very slow day, with the price consolidating within a very narrow range and not reaching either of the relatively close-by support or resistance levels.
There is no trend and the price is right in the middle of the zone between the levels, so things are looking very dull and unpredictable here. There will probably be better trading opportunities elsewhere today in other currency pairs.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time today.