USDCHF Analysis: Trendless ranging price action
Last Thursday’s signals may have produced a losing short trade from the bearish rejection of 0.9964.
Today’s USD/CHF Signals
Risk 0.50%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal upon the next touch of 0.9989 or 1.0033.
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 0.9951 or 0.9901.
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
This pair has been trendless and consolidative for a long while, and it has tended to act in a consolidative over the long term generally over the past several years.
This environment suggests that trading reversals off key levels in either direction, especially at the extremes of the price chart shown below, would be a logical approach to trading this currency pair today.
This means a long at 0.9900 or a short at 1.0033 but the two nearby levels also look attractive as the price action here in this pair is so evenly balanced.
There is nothing of high importance due today concerning either the CHF or the USD.