USDCHF Analysis: Consolidating between 0.9774 and 0.9818
Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 0.9774.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Short entry following a bearish price action reversal upon the next touch of 0.9818 or 0.9845.
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
Long entry following a bullish price action reversal upon the next touch of 0.9774 or 0.9706.
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 markets were in risk-off mode and that can be expected to continue to boost the Franc, or at least to prevent it falling in value. As such, despite the absence of any real trend in this currency pair, it made sense to be bearish and to look for a short trade.
I was correct to see 0.9774 as the day’s likely pivotal point, as after holding for an hour, my forecast for bearish action was proven wrong as the price broke above it, staying above 0.9774 ever since.
It now looks like the price here is very evenly balanced, without any real trend, so it can be possible to take rejections of either nearby key level, and to assume that the consolidation will continue. It might be wisest to scalp for conservative profit targets as I do not see strong directional movement as likely in this currency pair today.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.