USDCHF Analysis: Bullish double bottom at 0.9800?
Yesterday’s signals were not triggered as there was no bullish price action when 0.9837 was reached.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be taken before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal upon the next touch of 0.9877.
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 0.9820, 0.9800, or 0.9774.
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 technical picture was fairly unpredictable and that I would stand aside from trading this pair, but if I had to, I would look for a long trade and not a short one.
This was not a great call as the price ended up falling quite strongly.
This pair basically ranges around and reverses at key levels, of which there are several. The support at the round number of 0.9800 seems significant, and the level below that is also strong. So, although the U.S. Dollar is weak at present, it may be very difficult for the price of this currency pair to get much lower.
I would again avoid trading this pair today but if I had to, I would look for a long trade entry at bullish price action when either 0.9800 or 0.9774 are reached.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 4pm. Concerning the CHF, the Chair of the SNB will be giving a minor speech at 5pm.