USD/CHF Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.0050.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
Long entry after bullish price action on the H1 time frame following the next touch of 1.0050 or 0.9993.
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 Trade 1
Short entry after bearish price action on the H1 time frame following the next touch of 1.0155.
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.
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 if the price managed to get above 1.0050 and remain there, that is likely to be a significantly bullish development and quite possibly the start of a resumption of the long-term bullish trend. This is exactly what happened, but it is important to note that the bearish rhythm of the swings down still has not yet been interrupted which makes me somewhat cautious about the bullishness. There are no key resistance levels before 1.0155 so the price might find it easy to move up strongly soon, however.
There is nothing due regarding the CHF. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 1:30pm London time followed by Crude Oil Inventories at 4pm.