USDCHF Analysis: Bulls pushing toward strong resistance at 0.9945
Yesterday’s signals were not triggered, as the price action at 0.9915 was not sufficiently strong to trigger an entry signal. However, the level did provide the day’s low to the pip.
Today’s USD/CHF Signals
Risk 0.50%.
Trades must be taken between 8am London time and 5pm New York time today only.
Short Trade Ideas
⦁ Short entry following a bearish price action reversal upon the next touch of 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 0.9915 or 0.9869.
⦁ 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 we had a descending trend line very confluent with the key resistance level at 0.9945 close by, so I thought a short trade from a bearish reversal there could be a good trade entry opportunity. Another factor strengthening the case for that trade was that the price is here quite close to the parity area (1.0000) which has tended to act as long-term resistance.
This was a good call and the analysis still applies now, as the bulls have been building up pressure below this key area of resistance. Therefore, a bullish break out on improving risk sentiment has become more possible, but the area looks even more pivotal, and a failed breakout there could also produce a strong downwards move.
I would be prepared to take a bearish bias following a reversal at 0.9945 or a bullish bias if we get two consecutive hourly closes above that price during the New York session today.
There is nothing of high importance due today concerning either the CHF or the USD.