USDCHF Analysis: Bullish above 0.9848
Yesterday’s signals were not triggered, as there was no bearish price action when 0.9848 was reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trades
Go short following a bearish price action reversal upon the next touch of 0.9885 or 0.9916.
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 0.9725.
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 this pair was falling strongly to new long-term lows on risk-off sentiment and was now rebounding as risk sentiment had improved considerably over recent days. I thought that as long as risk sentiment continued to recover and the U.S. stock market continued to advance to new all-time highs, the price would continue to advance. This was a good call as the price rose quite strongly for another day, breaking up above the former resistance level at 0.9848 which has probably now become new support. I would take a bullish bias today at that support level if there is a retracement and strong bullish bounce there.
There is nothing of high importance due today regarding either the CHF or the USD.