USDCHF Analysis: Bulls step in at 0.9700
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 Trade
Short entry following a bearish price action reversal upon the next touch of 0.9793.
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 0.9701, 0.9664, 0.9637, or 0.9626.
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 the price remained extremely weak and in a strong bearish trend, with this pair actually at the heart of the Forex market right now. However, the price has finally touched a very supportive zone between roughly 0.9700 and 0.9600 where there are several key support levels due to congested price action when the price was last here many months ago. This means that bears may find it very hard to push the price down much further below here. I thought that it was quite likely we would see at least 0.9665 reached.
I was wrong about 0.9965 but the rest of my forecast was quite correct. The Dollar is recovering and safe havens such as the Swiss Franc are weakening. This may well persist, but equally it might just be a temporary retracement within a bigger trend against the Dollar, so I would be prepared to take a bearish bias on this pair if we get a bearish failure and strong bearish bounce when the nearest resistance level of 0.9793 is reached.
There is nothing of high importance due today regarding the CHF. Concerning the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.