USDCHF Analysis: Bullish above 0.9946
Yesterday’s signals produced a long trade from the bullish engulfing candlestick which rejected the support level identified at 0.9894 which is in floating profit. It would probably be a good idea to exit this trade for profit quickly.
Today’s USD/CHF Signals
Risk 0.50%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal upon the next touch of 0.9933 or 0.9946.
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 Idea
Go long following a bullish price action reversal upon the next touch of 0.9894 or 0.9853.
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 the bullishness here was driven more by weakness in the CHF as safe havens sell off than USD strength. I was ready to take a bullish bias if we had gotten 2 consecutive hourly closes above 0.9946.
We got a much more restrained bullishness, but the price has held from a nearby support level which gave a long trade. Although the picture is weakly bullish, it is important to note that the area of resistance just above the current price is strong and has held firm over the medium-term. Therefore, the chance of a bearish reversal there remains high. It is a very good pivotal area and it is highly likely to be pivotal today. If the price can get above 0.9946, I would take a bullish bias upon the second consecutive hourly close above that level during today’s London session.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.