USD/CHF Signal Update
Yesterday’s signals gave a profitable short trade following the bearish rejection of the resistance level identified at 0.9777, which should have been closed out by now ideally.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trades
Long entry after bullish price action on the H1 time frame following the next touch of 0.9707 or 0.9640.
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 0.9777 or 0.9816.
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
As it turned out, the resistance level I had identified at 0.9777 did in fact hold, and gave the opportunity for a short trade. The price fell to the support level I had identified at 0.9707 a short while after London close from where it reversed again.
The price is ranging in both the short-term and the long-term. This means that the best trading opportunities arise from common rejections of key levels, but do not usually travel very far. If you are going to trade this pair, it would make sense to have very conservative profit targets for such trades.
The SNB gave their policy input a short while ago and have left their dovish monetary policy unchanged. This may give this pair a bullish bias, at least for a while.
Concerning the CHF, there will be a release of the Swiss National Bank’s Monetary Policy Assessment and LIBOR Rate at 8:30am London time. Regarding the USD, there will be a release of Retail Sales, PPI and Philly Fed Manufacturing Index data at 1:30pm.