Yesterday’s signals produced a profitable long trade following the pin candle rejecting the support level identified at 0.9654. It would probably be an excellent idea to take some partial profit but also to leave part of it to run.
Today’s USD/CHF Signals
Risk 0.50% per trade.
Trades must be taken before 5pm London time today only.
- Go short after bearish price action on the H1 time frame following the next touch of 0.9761 or 0.9812.
- 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 entry after bullish price action on the H1 time frame following the next touch of 0.9654 or 0.9593.
- 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.
This pair is often driven by the highly correlated EUR/USD currency pair and yesterday’s possibly major rejection there of the 1.1295 level correlates with the bullish bounce from 0.9654. It is too early to say which direction is a more likely move over the short-term, but if the price can get established above 0.9761, it would be a very bullish sign.
Concerning the CHF, there will be a release of the Swiss National Bank’s Monetary Policy Assessment and LIBOR Rate, with the usual accompanying press conference, at 8:30am London time. Regarding the USD, there will be a release Unemployment Claims data at 1:30pm.