USDCHF Analysis: Bulls approaching pivotal parity level
Last Thursday’s signals were not triggered, as the bearish turn at 0.9931 did not happen until after 5pm London time that day.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may be taken prior to 5pm London time today only.
Short Trade Ideas
⦁ Short entry following a bearish price action reversal upon the next touch of 1.0013 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
⦁ Long entry following a bullish price action reversal upon the next touch of 0.9960, 0.9934, or 0.9921.
⦁ 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 last Thursday that I took no directional bias and saw a long from 0.9873 or a short from 0.9931 as equally valid trades due to any clear momentum. This was enough to keep out of trouble and the level at 0.9931 did at least turn out to be a pivotal point.
The picture now is much more bullish, as we have been seeing a steady move up.
The price has reached a very interesting point close to the parity level at 1.0000 which has held as resistance over several months. This means that there could be a great opportunity for a medium or long-term short trade at any bearish reversal above 1.0000, especially at 1.0013 or 1.0033.
I would be prepared to take a bearish bias at any solid bearish reversal at either of the nearby resistance levels.
There is nothing of high importance due today concerning either the CHF or the USD.