Yesterday’s signals were not triggered, as none of the key levels were 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 1.0058 or 1.0110.
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 1.0025 or 0.9965.
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 there was no doubt that we had a medium-term bullish trend now in this pair, although to get very bullish we really needed to see the price above 1.0110 first. I said that if the price could get established above 1.0058 during the London session and trade there for a couple of hours, I would take a bullish bias.
This was an OK call as the price never did break above 1.0058 so it was enough to stay out of trouble. Instead we have had a bullish consolidation below that level. The technical outlook is essentially unchanged from yesterday, a couple of hours above 1.0058 would still be a good bullish sign. Bulls can also look to whether the support at 1.0025 holds. The problem is that the ECB is giving its monthly input later and this can have a strong knock on highly correlated currencies such as the CHF, so at the time of that release and press conference the price can go anywhere.
Overall, I feel more comfortable taking long trades in this pair than short trades.
There is nothing of high importance due today concerning either the CHF or the USD.