USDCHF Analysis: Ranging above 0.9700 area
Yesterday’s signals were not triggered, as there was no bullish price action at 0.9727.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal upon the next touch of 0.9791 or 0.9840.
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 run.
Long Trade Ideas
Go long following a bullish price action reversal upon the next touch of 0.9706 or 0.9664.
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 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 as bears and bulls were quite evenly matched, I thought that the best approach to trading this pair would be to look at what happened when the resistance at 0.9791 was reached: I was ready to take a bullish bias if the price had got established above that level.
This never happened, and there is arguably a slight bullish tilt, but we are essentially seeing a consolidation here within a range the price is comfortable with.
I think either a long from a rejection of support at 0.9706 or a short from a rejection of the resistance level at 0.9791 would be equally good trade opportunities, as both levels are quite confluent with round numbers and this currency pair tends to mean-revert, and is certainly not trending anywhere.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be releases of Core Retail Sales, Retail Sales, and the Philly Fed Manufacturing Index at 1:30pm London time.