Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trades
- Go short following a bearish price action reversal upon the next touch of 1.0150.
- 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
- Go long following a bullish price action reversal upon the next touch of 1.0068, 1.0053, or 1.0034.
- 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
The price is close to reaching new 2-year highs, which are very long-term and significant highs. This is a typically a bullish sign, but it is a fact that this pair usually does not respond well to being judged on its directional momentum. Therefore, a major bearish reversal is quite likely to occur in this area – it is sometime to watch out for, at least. It does not look as if it is about to happen, but a strong rejection of 1.0150 might well signal that start of it. I would take a bearish bias here if that scenario plays out later today.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.