USDCHF Analysis: Slow medium-term bullish movement
Last Thursday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade Ideas
Short entry following a bearish price action reversal upon the next touch of 0.9950 or 0.9966.
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 Trade Ideas
Long entry following a bullish price action reversal upon the next touch of 0.9885 or 0.9841.
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 last Thursday that there was no trend, but bulls had the short to medium-term edge here as market sentiment is in “risk-off” mode which weakens the Franc. As long as the support at 0.9841 held up, it made sense to take a weakly bullish bias, but the real action in the Forex market was in the commodity currencies and the British Pound.
This was a good call, as the price has risen and become established above higher support at 0.9885. The risk-on environment continues, more or less, and so the price is likely to continue to edge higher until 0.9950 is reached. The parity area at 1.0000 has acted as long-term resistance also.
There is nothing of high importance due today regarding the CHF or the USD.