USDCHF Analysis: Still consolidating around 0.9900
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal upon the next touch of 0.9955.
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 price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade
Long entry following a bullish price action reversal upon the next touch of 0.9848.
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 price reaches 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 the situation had become very evenly balanced, with the price making both lower highs and higher lows to consolidate around 0.9900. The price was almost exactly halfway between support and resistance. I thought that rejections of either nearby levels, whether support or resistance, would probably make equally good trades, but may well not happen over the day.
This was a good call as neither level was reached, and the consolidation has continued. There is no change to the technical picture – I take exactly the same approach as yesterday. Another reason why I think the consolidation is likely to continue today is the fact that there is Swiss central bank input due tomorrow so the price is likely to remain quite stable ahead of that, although there is major U.S. data due later which could push the price to a key level. Fading a reversal at such a key level would probably be a wise approach, in either direction.
Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time. There is nothing of high importance due today concerning the CHF.