USDCHF Analysis: Pivotal point at 0.9925
Yesterday’s signals were not triggered, as the bearish price action took place just a little way above the resistance at 0.9915.
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 0.9924 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 Ideas
⦁ Long entry following a bullish price action reversal upon the next touch of 0.9873 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 although the picture had become a little more bullish, I saw both 0.9873 and 0.9915 as very likely to survive any test, so wanted scalping from bounces at either of these key levels. This was a relatively good call as although the high was just above 0.9915 it was the right area to enter a trade.
There is no real change to the technical picture, but I see today’s pivotal point as 0.9924 or perhaps 0.9925. If the price can break above that level and get established there, we should see another upwards thrust, so I would take a weak and cautious bullish bias until 0.9960 if this scenario does play out today.
I am more inclined to look to the bullish side due to the double or triple bottom that was put in at the support level of 0.9873.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.