USDCHF Analysis: Area at 0.9900 is likely to be today’s pivotal point
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal upon the next touch of 0.9964.
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 0.9900 or 0.9890.
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
This pair has been trendless and consolidative for quite a long while, and the CHF is so manipulated that it tends to act consolidative over the long term anyway.
This environment suggests that trading reversals off key levels in either direction would be a logical approach to trading this currency pair today.
I see a long trade entry at a bullish bounce / rejection of the round number at 0.9900 as the highest probability trade set up which we might get today.
There is nothing of high importance due today concerning the CHF. Regarding the USD, Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm.