Last Thursday’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 taken before 5pm London time today over the next 24-hour period only.
Short Trade
Go short following a bearish price action reversal upon the next touch of the bearish trend line shown in the price chart below, which is currently sitting at approximately 1.0025.
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.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9939.
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.
Remove 50% of the position as profit when the price reaches 25 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 currency pair has been in a strong and clear long-term bullish trend, moving up every single week during the past two months – until the last week. The bullish move is finally running out of steam, with the Dollar still strong but advancing against other currencies.
the price has been mostly consolidating over the past three weeks, ever since it reached the psychologically important parity area of 1.000. I had thought that a long trade after a fast drop to the nearest support level would still be likely to give some long pips. However, I think the bearish trend line shown in the price chart below could be much more interesting if it offers a short trade upon a bearish reversal if it is touched again soon. I have no directional bias as the action is simply too consolidative to be predicted.
There is nothing due today concerning either the CHF or the USD. It is a public holiday in Switzerland today.