Yesterday’s signals were not triggered, as the support level at 0.9970 was not reached during the London session.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trades
Go short following a bearish price action reversal upon the next touch of 1.0015, 1.0053, or 1.0066.
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 0.9970 or 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 the level at 0.9965 was likely to act as support, and also to be the day’s pivotal level, so a long trade at a strong bullish bounce there looked like the best potential set-up for a trade – I would take a bullish bias at that point.
The support needed to be adjusted upwards to 0.9970 but overall this was a reasonably good call as the price has made a small bearish retracement but is so far finding a floor at 0.9970 after reaching a high at the parity level of 1.0000.
I would take a bullish bias now if we get a very strong bullish rejection of 0.9970 with the level continuing to hold as support.
This pair is without any long-term trend so traders should be cautious, but we see more risk-on sentiment in the market generally and that is helping this pair to rise. However, movement over the long-term is slow and ranging, with the price needing to get well clear of 1.0100 before being intro truly bullish territory.
There is nothing of high importance due today concerning either the CHF or the USD.