Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today, over the next 24-hour period.
Short Trades
Go short following a bearish price action reversal upon the next touch of 0.9913 or 0.9936.
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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9827.
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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
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 if the FOMC release weakened the Dollar, there should be good potential here for the price to fall. The release did end up weakening the Dollar, and so the price has fallen here, coming quite close to the support level shown in the price chart below at 0.9827.
This pair has been in a very slow, gentle bearish trend for about one month. It is consistent but does not seem very reliable. The best that can be said here is that a break below the 0.9827 will be a more bearish sign of the trend speeding up, but it is going to be hard to trade any momentum here until that happens. A bullish bounce at 0.9827 could be a good long trade in the alternative scenario, although we may well have already seen the low of the day very close to that level.
There is nothing due concerning the CHF. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.