Yesterday’s signals were not triggered, as the bullish price action took place below 0.9950, and as there was no bearish price action at 0.9985.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal upon the next touch of 1.0111.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9988.
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 I had a bearish bias between 0.9985 and 0.9950. This worked out well, as the strong bullish reversal did not arrive until the price had already fallen below 0.9950. The U.S. Dollar has strengthened very firmly since Powell’s testimony yesterday, and this pair is no exception. The move may have played out by now, and I think a period of consolidation here is now likely. If there is movement, it is more likely to be bullish than bearish, so a long trade at the support level of 0.9988 could be an interesting opportunity.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories at 3:30pm London time.