USDCHF Analysis: CHF is strengthening
Yesterday’s signals were not triggered, as none of the key levels were reached during the specified time.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be taken before 5pm London time today.
Short Trade Ideas
⦁ Short entry following a bearish price action reversal upon the next touch of 0.9915, 0.9931, or 0.9960.
⦁ 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 Idea
⦁ Long entry following a bullish price action reversal upon the next touch of 0.9894.
⦁ 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 technical picture had become less clear and so I would avoid trading this currency pair. The best I was able to say was that if the price had gotten established above 0.9950 later, it would start to look more bullish, and it is true that the price turned bearish quite quickly above that price level.
The CHF is unusually strong, the move down is not a case of Dollar weakness, so for this reason I think this pair is looking considerably more bearish, although it seems to be making a short-term bullish turn above the support level at 0.9894.
I would do nothing here unless and until we get a bearish break below the support level at 0.9894, and I would then be prepared to take a bearish bias, as the price has a lot of room to fall below that price.
There is nothing of high importance due today regarding the CHF. Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 4pm.