Yesterday’s signals produced a long trade following the bullish outside candle rejecting the identified support level at 0.9694. The trade would still be open.
Today’s USD/CHF Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Short Trade 1
- Short entry after bearish price action on the H1 time frame following the next touch of 0.9812.
- 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.
Long Trade 1
- Long entry after bullish price action on the H1 time frame following the next touch of 0.9694.
- 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.
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
This pair, like its sister pair EUR/USD, is in a strong trend against the USD and reaching long-term high/low prices. Just as the EUR/USD may finally be making a short-term top at 1.1250, so this pair had a strong buy reaction at the support level of 0.9694 yesterday. This is against the trend, but could be the beginning of a deep pullback. The price has barely risen from that candlestick so far, but it does look as if there is now going to be some type of counter-trend bullish move over the short-term at least. As this pair likes to range, it could be a very good trade.
There is nothing due today concerning either the CHF or the USD.