Last Thursday’s signals may have given a profitable long trade following the bullish rejections of 0.9941 last Thursday, although the price action was a little unclear.
Today’s USD/CHF Signals
Risk 0.50% per trade.
Trades must be taken before 5pm London time today only.
Short Trade 1
* Go short after bearish price action on the H1 time frame following the next touch of 1.0000.
* 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.
Long Trade 1
* Go long after bullish price action on the H1 time frame following the next touch of 0.9935.
* 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.
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
The price opened with a reasonably large gap down, but then was filled quickly and strongly. The price is now threatening to break up past a bearish trend line shown in the chart below, and it is approaching an area (the parity area) which shows a lot of bearish confluence.
There is no long-term trend, and the confusing picture is a result of conflicting forces – the pair is highly correlated with the Euro, but at the same time the Swiss Franc is less in demand as a safe-haven asset. This means that until the market settles down, this pair should be hard to predict, but after that time if the parity area holds as resistance, we will probably see a downwards drift beginning again.
There is nothing due today concerning either the CHF or the USD.