USD/CHF Signal Update
Last Thursday’s signals were not triggered as there was no bearish price action at 0.9894.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today.
Long Trades
Go long after bullish price action on the H1 time frame following the next touch of 0.9742 or 0.9650.
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 trade is 20 pips in profit and leave the remainder of the position to run.
Short Trades
Go short after bearish price action on the H1 time frame following the next touch of 0.9800 or 0.9862.
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 trade is 20 pips in profit and leave the remainder of the position to run.
USD/CHF Analysis
This pair has more or less moved in tandem with the EUR/USD: a very strong push against the USD following the much poorer than expected U.S. economic data release last Friday making the prospect of a U.S. rate hike any time soon highly unlikely.
However the EUR is stronger than the CHF which is actually on the weak side, due largely to its very negative interest rate. This means that the EUR will probably tend to be a better currency than the CHF to use to short the USD.
However support and resistance tends to hold quite well with this pair, especially when these levels coincide with whole, half or quarter numbers, so there may be good opportunities to trade any reversals at 0.9800 or 0.9650.
There is nothing due today concerning the CHF. Regarding the USD, the Chair of the Federal Reserve will be speaking at 5:30pm London time.