USDCHF Analysis: Strongly supported around 0.9800
Last Thursday’s signals were not triggered, as none of the key levels were hit that day.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal upon the next touch of 0.9891, 0.9911 or 0.9945.
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 0.9820 or 0.9800.
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 was prepared to take a bearish bias if we had gotten a bearish reversal from any of the resistance levels which I identified above. However, I noted that there was an inflective point below the price at 0.9840, so I thought that the price may struggle to get any lower than 0.9850. This was a good call as the price did not even reach the resistance and made a low for the day at 0.9851. Friday saw the resistance level hold when it was reached.
There is no change to the technical picture. It is likely to be a quiet day in the Forex market today, so any support and resistance levels reached are likely to hold. The area at 0.9850 may also be supportive.
There is nothing of high importance due today concerning either the CHF or the USD.