Yesterday’s signals were not triggered, as no key levels were reached within the specified period.
Today’s USD/CHF Signals
Risk 0.50%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade ideas
⦁ Short entry following a bearish price action reversal upon the next touch of 0.9915, 0.9945, or 0.9969.
⦁ Place the stop loss 1 pip above the local swing high.
⦁ Adjust the stop loss to break even once the trade is 20 pips in profit.
⦁ Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
⦁ Long entry following a bullish price action reversal upon the next touch of 0.9820 or 0.9800.
⦁ Place the stop loss 1 pip below the local swing low.
⦁ Adjust the stop loss to break even once the trade is 20 pips in profit.
⦁ Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 it was likely to be a quiet day in the Forex market, so any support and resistance levels reached were likely to hold. I also thought that the area at 0.9850 may be supportive. This was a great call on both counts, as the day’s low was just a few pips above 0.9850, and the nearest resistance level is still holding at the time of writing.
The Dollar has recovered and so the action here is looking more bullish, but we have an obvious pivotal point at 0.9894 which is holding. Therefore, it makes sense to say that bulls should probably be looking for the price to get established above the confluent round number at 0.9900 before taking any long trades. Despite that, the resistance levels at 0.9915 and 0.9945 both look quite strong, so the price may not get much higher today in any case.
For these reasons, this pair is probably best avoided today. If you must trade it, scalping reversals at any key level on a short-term time frame is probably going to be the most fruitful approach.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.