USDCHF Analysis: Bulls break above 0.9850 area
Yesterday’s signals may have produced a losing short trade from the bearish rejection of 0.9847.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trade Ideas
Short entry following a bearish price action reversal upon the next touch of 0.9885, or 0.9929.
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 ride.
Long Trade Idea
Long entry following a bullish price action reversal upon the next touch of 0.9847.
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 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 resistance at 0.9850 would probably hold although the Dollar is strengthening. I thought that if the price could get established above 0.9860 it would be a bullish sign; if above 0.9885, a very bullish sign. I was wrong about the resistance holding, although both levels did give a few short pips when each were hit.
The price is now looking weakly bullish above 0.9860, and the U.S. Dollar is generally strong right now, so the odds seem to suggest slightly higher prices over the coming hours. However, it is quite likely that the price will remain below 0.9885 and not move up by very much.
There is nothing of high importance due today regarding either the CHF or the USD.