USDCHF Analysis: Bullish consolidation above 0.9960
Yesterday’s signals were not triggered, as none of the key price levels have been reached yet.
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 1.0013, 1.0033, or 1.0065.
⦁ 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 yesterday that the price action was becoming more and more bullish. It looked as if we were going to get a strong upwards push, and not a weak one.
I thought that this pair was worth keeping an eye on as it may well get to the pivotal zone above 1.0000 which could mean something decisive over the medium to long term.
This was a good call as the price has held up bullishly although it has not moved very much over the past 24 hours. Yet the nearest support level at 0.9960 has held.
It looks as if the price is poised to move higher today, so my analysis from yesterday that the area above 1.0000 can be very pivotal now remains valid. I would take a bullish bias if we get a bounce at 0.9960, but I would be prepared to exit and switch to a short trade if we get a convincing bearish reversal at any of the noted resistance levels later on.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Chicago PMI data at 2:45pm London time.