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, over the next 24-hour period only.
Short Trades
* Short entry following a bearish price action reversal upon the next touch of 0.9913 or 0.9936.
* 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
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9810.
* 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.
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 that there was no meaningful change to the technical picture which was still gently bearish, with the price chart below dominated by descending trend lines below the parity level, exerting gentle downwards pressure on the price. It still seems likely that retracements to the areas of resistance above 0.9900 will remain the best trade opportunities in this pair. If the price can break convincingly below the support level at 0.9810, that would be a bearish sign, as the price would have a lot further to fall before encountering the next support level. I have a weakly bearish bias below 0.9810.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.