USDCHF Analysis: Consolidating between 0.9942 and 0.9889
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/CHF Signals
Risk 0.50%.
Trades must be taken prior to 5pm London time today.
Short Trade Idea
Go short following a bearish price action reversal upon the next touch of 0.9942 or 0.9958.
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 ride.
Long Trade Ideas
Go long following a bullish price action reversal upon the next touch of 0.9889, 0.9853, or 0.9842.
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 ride.
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 price was now ranging on every time frame and was right in the middle of an obvious consolidation zone. This suggested that it was best to leave this pair alone today, and that was a good call as the price has moved very little over the past 24 hours.
A long trade from a bullish bounce at 0.9889 could be interesting if it sets up with the correct price action later today. The price is consolidating so generally, trading any rejection of the extreme levels at the top or bottom of the price chart shown below will probably be the best strategy to take if you must trade this currency pair today, but there will probably be better opportunities elsewhere.
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.