USD/CHF Signal Update
Yesterday’s signals triggered a short trade entry following the bearish pin candle rejection of the identified resistance level at 0.9845, although it was only good for the minimum 20 pips of profit.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Long Trade 1
* Long entry after bullish price action on the H1 time frame following the next touch of 0.9788.
* 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 trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
* Short entry after bearish price action on the H1 time frame following the next touch of 0.9845 or 0.9894.
* 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 trade is 20 pips in profit and leave the remainder of the position to ride.
USD/CHF Analysis
The strength in the USD has continued, although it is becoming more muted as we approach crucial data releases. It is still significant that the price could not really rise above the resistance at 0.9845 which continues to hold. As the long-term action in this pair is choppy and consolidative, a reversal at this area of resistance – which is strong – would be logical. If sentiment on the USD turns bearish it could be a great short trade. The same applies to the level above that at 0.9894.
There is a very long-term, multi-month double top at around 0.9950 which is now coming into sight. A break above that would be a very bullish sign and signify the likely start of a long-term bullish trend.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by ISM Manufacturing PMI at 3pm.