USDCHF Analysis: Resistance at 0.9900 holding so far
Yesterday’s signals were not triggered, as the bearish price action at the resistance level of 0.9890 was not strong enough to justify a short trade entry.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be taken before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal upon the next touch of 0.9900 or 0.9951.
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 0.9876 or 0.9820.
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 that the price was showing signs of bottoming out from about 0.9840, but overall, we had ranging price action and no clear direction so the best approach would probably be to pick good levels at which to find reversals. I thought that the two best levels for that were likely to be at the round numbers of 0.9900 and 0.9800. This was a good call, as just a few hours ago we had a bearish reversal at 0.9900 which has also broken below 0.9890, although it came too late to be useful yesterday.
The Forex market is relatively dull and trendless, with the U.S. Dollar gently waxing and waning, although a long-term bearish trend in the greenback may be just beginning – it is not being felt at present.
The best that can be said about this pair today is that if the price can get established above 0.9900 it would probably rise further, and if the price can get established below 0.9875, it will probably fall further.
There is nothing of high importance due today concerning either the CHF or the USD.