USD/CHF Signal Update
Last Thursday’s signals produced a profitable long trade following the break of the bullish pin candle rejecting the support level identified at 1.0050.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Go long after bullish price action on the H1 time frame following the next touch of 0.9949 or 0.9902.
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
Go short after bearish price action on the H1 time frame following the next touch of 0.9993 or 1.0043.
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.
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 last Thursday that although the pair was looking more bullish by rising from the parity area, the bearish swing rhythm was still intact which made me very cautious. I was right to be cautious as we now have a break below parity. The pair looks bearish and the USD is selling off everywhere. This pair is behaving very similarly to the EUR/USD currency pair, which I prefer as a vehicle to trade against the USD.
There is nothing of high importance due today concerning either the CHF or the USD.