Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
Go short following a bearish price action reversal upon the next touch of 0.9965 or 1.0015.
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 Trade
Go long following a bullish price action reversal upon the next touch of 0.9892.
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 as there was no trend and the price was right in the middle of the zone between levels, so things were looking very dull and unpredictable here. I thought that there would probably be better trading opportunities elsewhere today in other currency pairs. This was a good call as the EUR/USD made a much smoother move, while this pair mostly just consolidated during the London session.
There may be an opportunity here today as the price is still essentially ranging over the long and medium-term, with the price very close to the resistance level at 0.9965 which has tended to hold. If the price rejects the level strongly with a solid bearish bounce after London opens, I would take a cautious bearish bias here – I think this level is quite likely to hold today and will in any case probably be the pivotal point for the day.
There is nothing of high importance due today concerning either the CHF or the USD.