USDCHF Analysis: Short-term bullish trend topped out
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.50%.
Trades must be taken before 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.
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 0.9837.
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 the CHF was acting as a European currency today and not as a safe haven. This meant there could be knock-on volatile movement in this pair.
I had no directional bias, but I saw a short trade from the nearby resistance levels as a potentially good trade entry opportunity.
This was a good call as although the price never quite reached the resistance to trigger a short trade entry signal, the levels of course held, and the price has fallen over the day.
The price is now in the middle of a wide zone between the nearest support and resistance levels but is showing short-term bullish momentum.
This rise will probably continue for a while, but it is hard to say how far it will go.
I would stand aside from trading this pair today, but if I had to, I would look for a long trade and not a short one.
There is nothing of high importance due today concerning either the CHF or the USD