USDCHF Analysis: Consolidation between 0.9800 and 0.9830
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
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 0.9830 or 0.9876.
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 0.9800, 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 I thought it was likely that the price would break above the resistance at 0.9830 but I thought that 0.9876 would hold over the course of the day. I was looking for a break above the resistance level at 0.9830 but it did not happen. Instead, the price is consolidating very narrowly.
A look at the price chart below shows the price is very evenly balanced between bulls and bears, and that there is no long-term trend in this currency pair.
For this reason, it would probably be wise to stand aside from trading this pair today, except for fading reversals at the extremes such as 0.9876 or 0.9706.
I have no directional bias on this currency pair today.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.