USDCHF Analysis: Trendless ranging price action
Yesterday’s signals were not triggered, as there was no bullish price action at 0.9951.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be entered prior to 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal upon the next touch of 0.9951 or 0.9968.
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 0.9900 or 0.9890.
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
The technical picture has turned a little more bearish, as the support level I identified yesterday at 0.9951 was broken and then began to act as good resistance after “flipping”. However, we are still clearly in a ranging environment.
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.
The most likely and high-probability trade set up would be a long at 0.9900.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Philly Fed Manufacturing Index data at 1:30pm London time and Crude Oil Inventories at 4pm.