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 entered before 5pm London time today.
Short Trade
Short entry following a bearish price action reversal upon the next touch of 0.9985.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9907 or 0.9885.
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 took a bearish bias yesterday, which did not work out well as the price initially fell but then reversed sharply with a bullish “V” formation, printing new higher support, but then bouncing bearishly at the descending trend line which it reached in recent hours. The overall picture is muddled and messy and I think trading this pair is going to best avoided today. The trend line may hold as resistance, but there is a support level so close by I see it as more likely to ultimately break. I have no directional bias today.
There is nothing important due today regarding the CHF or the USD.